BTC vs Robinhood (HOOD): 2026 Volatility & Correlation

Q: Which is a better investment: BTC or HOOD?

Over the past year, HOOD looks like the better investment: it had higher total return (HOOD +58.9% vs BTC -19.6%) and a higher Sharpe ratio (HOOD 0.94 vs BTC -0.32). On risk, BTC was less volatile (BTC 45.6% vs HOOD 75.9%), BTC had a smaller max drawdown (BTC -48.9% vs HOOD -53.4%), and BTC had less severe losses on the worst 5% of days (Expected Shortfall of BTC -5.71% vs HOOD -10.79%).

Written by Gale Finance Team

Reviewed by Sid Kalla CFA Charterholder

Quick answer

Which is a better investment: BTC or HOOD?

Over the past year, HOOD outperformed (-19.6% vs +58.9%) with a Sharpe ratio of 0.94.

Total Return

BTC -19.6%

HOOD WIN +58.9%

Sharpe Ratio

BTC -0.32

HOOD WIN 0.94

Annualized Volatility

BTC WIN 45.6%

HOOD 75.9%

Max Drawdown

BTC WIN -48.9%

HOOD -53.4%

Analysis period: 2025-02-27 to 2026-02-25

BTC Total Return

↓ -19.6%

HOOD Total Return

↑ +58.9%

Relative Performance of BTC vs HOOD (Normalized to 100)

BTC HOOD

Normalized to 100 at start date for comparison

Key Takeaways

Total Return: BTC delivered a -19.6% total return, while HOOD returned +58.9% over the same period. HOOD outperformed on total returns.
Risk-Adjusted Return (Sharpe Ratio): BTC had a negative Sharpe (-0.32) while HOOD was positive (0.94), indicating HOOD had meaningfully better risk-adjusted performance in this period.
Volatility (Annualized): HOOD was more volatile, with 75.9% annualized volatility, versus 45.6% for BTC.
Maximum Drawdown: BTC's maximum drawdown was -48.9%, while HOOD experienced a deeper drawdown of -53.4%.
Tail Risk (VaR & Expected Shortfall): At the 5% level (daily log returns), BTC's VaR was -3.80% and its Expected Shortfall (CVaR) was -5.71%; HOOD's were -8.11% and -10.79%. VaR is the cutoff; Expected Shortfall is the average move on the worst days.
Skew & Kurtosis: Skew: BTC -0.15 vs HOOD -0.09. Excess kurtosis: BTC 4.43 vs HOOD 3.09. Negative skew leans downside; higher excess kurtosis means fatter tails.
Tail Days & Extremes: 2σ tail days (down/up): BTC 9/9, HOOD 9/6. Worst day: BTC -11.85% (2026-02-04) vs HOOD -19.79% (2025-03-10). Best day: BTC +11.72% (2026-02-05) vs HOOD +23.53% (2025-04-09).
Risk ratios: Sortino - BTC: -0.45 vs. HOOD: 1.42 , Calmar - BTC: -0.39 vs. HOOD: 1.11 , Sterling - BTC: -0.86 vs. HOOD: 1.70 , Treynor - BTC: -0.27 vs. HOOD: 0.27 , Ulcer Index - BTC: 18.99% vs. HOOD: 18.61%

Bitcoin vs Robinhood Correlation

0.43 Average Correlation

Bitcoin and Robinhood are moderately correlated over the past year. With a correlation of 0.43, these assets show moderate co-movement, offering some diversification when held together.

For portfolio construction, this moderate correlation offers some diversification benefit, though the assets still tend to move together during major market moves.

Metric	Value
Current (30-day)	0.06
Average (full period)	0.43
Minimum	-0.01
Maximum	0.78

Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement.

Investment Comparison

If you invested $10,000 in each asset on February 27, 2025:

BTC $8,043.39 -19.6%

HOOD $15,893.81 +58.9%

Difference: $7,850.42 (HOOD ahead)

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Bitcoin and Robinhood: Risk Analysis

Bitcoin experienced its maximum drawdown of -48.9% from 2025-10-06 to 2026-02-04. It has not yet recovered to its previous peak.

Robinhood experienced its maximum drawdown of -53.4% from 2025-10-09 to 2026-02-12. It has not yet recovered to its previous peak.

Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.

Sharpe Ratio of BTC and HOOD

BTC Sharpe Ratio

↓ -0.32

HOOD Sharpe Ratio

↑ 0.94

Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. BTC had a negative Sharpe (-0.32) while HOOD was positive (0.94), indicating HOOD had meaningfully better risk-adjusted performance in this period.

A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Sortino Ratio of BTC and HOOD

BTC Sortino Ratio

↓ -0.45

HOOD Sortino Ratio

↑ 1.42

Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only counts downside deviation (returns below the target return). HOOD had better downside-adjusted returns.

A higher Sortino is better. It's useful when upside volatility is common (crypto is the obvious example). Downside deviation: BTC 32.5% vs HOOD 50.1%. Calculated on each asset's full 365-day lookback of available prices, using the daily risk-free rate as the target return, and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Calmar Ratio of BTC and HOOD

BTC Calmar Ratio

↓ -0.39

HOOD Calmar Ratio

↑ 1.11

Calmar ratio compares CAGR to maximum drawdown. Higher Calmar means more return per unit of worst drawdown. HOOD posted the higher Calmar ratio.

Calmar is computed on each asset's full 365-day lookback and uses the max drawdown over that same window.

Sterling Ratio of BTC and HOOD

BTC Sterling Ratio

↓ -0.86

HOOD Sterling Ratio

↑ 1.70

Sterling ratio measures excess return per unit of average drawdown (typically drawdowns worse than 10%). HOOD posted the higher Sterling ratio.

Sterling uses average drawdown events deeper than 10% and subtracts the risk-free rate to report excess return.

Treynor Ratio of BTC and HOOD

BTC Treynor Ratio

↓ -0.27

HOOD Treynor Ratio

↑ 0.27

Treynor ratio measures excess return per unit of market risk (beta) instead of total volatility. HOOD posted the higher Treynor ratio.

Treynor uses beta vs the S&P 500 (SPY) on shared dates and the average 3-month Treasury rate as the risk-free rate.

Ulcer Index of BTC and HOOD

BTC Ulcer Index

18.99%

HOOD Ulcer Index

18.61%

Ulcer Index captures drawdown depth and duration. Lower Ulcer Index means less drawdown pain. HOOD had the lower Ulcer Index (less drawdown pain).

Ulcer Index is computed from each asset's drawdown series over the full lookback window.

Tail Risk & Distribution Shape (1-Year): Bitcoin vs. Robinhood

This section looks at the shape of daily returns, not just the average. Tail stats are computed per asset on its own daily series (crypto includes weekends). We use daily log returns $\ln\left(\frac{P_t}{P_{t-1}}\right)$ so multi-day moves add cleanly.

Definitions: Value at Risk (VaR), Expected Shortfall, skew, kurtosis, and fat tails.

Metric (1-Year)	BTC	HOOD
5% VaR (daily log return)	-3.80%	-8.11%
5% Expected Shortfall (CVaR)	-5.71% (worst 19 days)	-10.79% (worst 13 days)
Skew	-0.15	-0.09
Excess kurtosis	4.43	3.09
2σ tail days (down / up)	9 / 9	9 / 6
Worst day	-11.85% (2026-02-04)	-19.79% (2025-03-10)
Best day	+11.72% (2026-02-05)	+23.53% (2025-04-09)

Downside co-moves (2σ) — 1-Year

Computed on shared dates only (n=249). A “2σ downside move” means a shared-close log return more than 2 standard deviations below that asset’s own mean on this shared-date series. Dates below show simple returns (%) for readability.

When HOOD has a big down day, BTC also does

11.1%

1 / 9 days

When BTC has a big down day, HOOD also does

12.5%

1 / 8 days

Show downside tail dates

Dates below are shared-date observations. The “Date” is the period end (close). Tail thresholds are computed on log returns, but the table shows simple returns (%) for readability. Returns are computed from the previous shared close to this one (for example, Friday → Monday includes weekend moves).

Days when both BTC and HOOD had a big down day (2σ)

Date (interval)	BTC	HOOD
2025-03-07 → 2025-03-10	-9.21%	-19.79%

Days when BTC had a big down day

Date (interval)	BTC	HOOD
2025-03-07 → 2025-03-10	-9.21%	-19.79%
2025-04-04 → 2025-04-07	-5.57%	+2.61%
2025-08-22 → 2025-08-25	-5.69%	-1.26%
2025-10-10	-6.98%	-8.85%
2026-01-16 → 2026-01-20	-6.06%	-2.72%
2026-01-30	-7.07%	-1.74%
2026-02-04	-11.85%	-7.41%
2026-02-20 → 2026-02-23	-5.65%	-5.69%

Days when HOOD had a big down day

Date (interval)	BTC	HOOD
2025-03-07 → 2025-03-10	-9.21%	-19.79%
2025-04-03	+0.77%	-10.36%
2025-04-04	+0.83%	-9.80%
2025-11-06	-2.46%	-10.81%
2025-11-20	-5.16%	-10.11%
2025-12-11	+0.53%	-9.05%
2026-01-30 → 2026-02-02	-3.22%	-9.62%
2026-02-05	+11.72%	-9.85%
2026-02-11	-1.70%	-8.91%

Read this as “how ugly the ugly days get”, not as a precise forecast. One-year samples are small, so tail estimates are inherently noisy.

Bitcoin vs Robinhood Volatility (BTC vs HOOD)

BTC Volatility

45.6%

±2.39% daily

HOOD Volatility

75.9%

±4.78% daily

Typical daily swing

BTC

±2.39%

HOOD

±4.78%

Bitcoin's annualized volatility of 45.6% means it typically moves ±2.39% on any given day.

Robinhood's annualized volatility of 75.9% means it typically moves ±4.78% on any given day.

HOOD's higher volatility means a wider path to returns — this can be attractive for tactical, shorter-term exposure, while BTC's smoother profile may better suit long-term allocators seeking steadier growth.

For comparison, the S&P 500 typically has 15-18% annualized volatility, translating to roughly ±1% daily moves. Higher volatility means larger potential gains but also larger potential losses.

Bitcoin vs Robinhood Performance Over Time

Metric	BTC	HOOD
30 Days	-23.5%	-27.5%
90 Days	-25.4%	-39.5%
180 Days	-37.2%	-25.5%
1 Year	-18.8%	58.9%

Shorter time frames can show different leaders as market conditions change. Consider your investment horizon when comparing performance.

Full Comparison of Bitcoin vs. Robinhood (1-Year)

Metric	BTC	HOOD
Total Return	-19.6%	+58.9%
Annualized Volatility	45.6%	75.9%
Sharpe Ratio	-0.32	0.94
Sortino Ratio	-0.45	1.42
Calmar Ratio	-0.39	1.11
Sterling Ratio	-0.86	1.70
Treynor Ratio	-0.27	0.27
Ulcer Index	18.99%	18.61%
Max Drawdown	-48.9%	-53.4%
Avg Correlation to S&P 500	0.47	0.57
5% VaR (daily log return)	-3.80%	-8.11%
5% Expected Shortfall (CVaR)	-5.71%	-10.79%
Skew	-0.15	-0.09
Excess kurtosis	4.43	3.09
2σ tail days (down / up)	9 / 9	9 / 6

Audit this calculation

Formulas, inputs, and conventions used to compute the metrics on this page.

Inputs & conventions

Shared window for pair metrics: 2025-02-27 → 2026-02-25 (last shared close).
Rolling correlation sample (shared closes): 220 rolling 30-day values (from 249 shared daily returns).
Annualization (days/year): BTC: 365 days/year; HOOD: 252 days/year.
Risk-free rate: Uses the 3-month U.S. Treasury yield (FRED: DGS3MO), averaged over each asset’s window:

BTC: 4.20% over 2025-02-26 → 2026-02-25.

HOOD: 4.20% over 2025-02-27 → 2026-02-25.
Volatility drag (rule of thumb): Estimated from annualized volatility (simple returns). For the log-return framing, see Log returns.

BTC: ≈ -10.4%/yr

HOOD: ≈ -28.8%/yr
Data alignment: No forward fill. Correlation and tail co-moves are computed on shared closes only.
For cross-calendar pairs (e.g., crypto vs stocks), weekend/holiday moves roll into the next shared close.
Return conventions: Volatility/Sharpe/Sortino use simple daily returns. Tail-risk uses daily log returns for distribution stats (but tables show simple returns). Log returns.

Formulas

Daily simple return

r_t = \frac{P_t}{P_{t-1}} - 1

Volatility

\sigma_{ann} = \sigma(r_t)\sqrt{A}

Volatility drag (approx.)

\text{drag} \approx \tfrac{1}{2}\sigma_{ann}^2

Sharpe Ratio

S = \frac{A\,\bar{r} - r_f}{\sigma(r_t)\sqrt{A}}

Sortino Ratio

So = \frac{A\,\bar{r} - r_f}{\sqrt{\mathbb{E}[\min(0,\,r_t - r_f/A)^2]}\,\sqrt{A}}

Maximum Drawdown

MDD = \min_t\left(\frac{P_t}{\max_{s \le t} P_s} - 1\right)

Average Correlation

\rho = \frac{\operatorname{cov}(r^A,\,r^B)}{\sigma_A\,\sigma_B}

Log returns

\ell_t = \ln\left(\frac{P_t}{P_{t-1}}\right)

Notation

$P_t$: Price on day t.
$r_t$: Simple daily return.
$\ell_t$: Log daily return.
$\bar{r}$: Average daily return.
$\sigma(r_t)$: Standard deviation of daily returns.
$A$: Annualization factor (days/year).
$r_f$: Annual risk-free rate.

Bitcoin vs Robinhood: Frequently Asked Questions

Which has higher volatility: BTC or HOOD?

HOOD showed higher volatility at 75.9% annualized, compared to 45.6% for BTC Over the past year. Higher volatility means larger price swings in both directions.

Does BTC provide diversification when held with HOOD?

BTC and HOOD are moderately correlated over the past year, with an average correlation of 0.43. This offers some diversification benefit, though they still tend to move together during major market moves.

How bad are the worst 5% days for BTC vs HOOD?

Over the past year, BTC's 5% VaR was -3.80% and its 5% Expected Shortfall was -5.71% (worst 19 days). HOOD's were -8.11% and -10.79% (worst 13 days).

Do BTC and HOOD crash together on bad days?

On shared dates (n=249), when HOOD has a 2σ down day, BTC also does 11.1% (1/9 days). In the other direction, when BTC has one, HOOD also does 12.5% (1/8 days).

Which has better risk-adjusted returns: BTC or HOOD?

BTC had a negative Sharpe (-0.32) while HOOD was positive (0.94) Over the past year, indicating HOOD had meaningfully better risk-adjusted performance.

Can BTC and HOOD be combined in a portfolio?

Yes, though allocation sizing matters. Their moderate correlation offers some diversification benefits. HOOD's higher volatility (75.9%) means even small allocations can materially impact overall portfolio risk.