Cite This Comparison
"Riot Platforms vs Iris Energy (RIOT vs IREN): Returns, Risk & Volatility (2025)." Gale Finance, December 31, 2025. https://www.gale.finance/compare/riot-vs-iren-2025 Free to use with attribution. Please link back to this page or gale.finance.
Analysis period: 2025-01-01 to 2025-12-31
Relative Performance of RIOT vs IREN (Normalized to 100)
Normalized to 100 at start date for comparison
Key Takeaways
- Total Return: RIOT delivered a +2.7% total return, while IREN returned +233.1% over the same period. IREN outperformed on total returns.
- Risk-Adjusted Return (Sharpe Ratio): IREN had a higher Sharpe (1.71 vs 0.38), indicating better risk-adjusted performance.
- Volatility (Annualized): IREN was more volatile, with 97.2% annualized volatility, versus 80.7% for RIOT.
- Maximum Drawdown: RIOT's maximum drawdown was -53.5%, while IREN experienced a deeper drawdown of -60.2%.
Riot Platforms vs Iris Energy Correlation
Riot Platforms and Iris Energy were strongly correlated in 2025. With a correlation of 0.67, these assets tended to move together, limiting diversification benefits.
For portfolio construction, this strong correlation means holding both RIOT and IREN provides limited risk reduction — they're likely to decline together in downturns.
| Metric | Metric | Value |
|---|---|---|
| Current (30-day) | 0.67 | |
| Average (full period) | 0.67 | |
| Minimum | 0.36 | |
| Maximum | 0.91 |
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 January 1, 2025:
Difference: $23,039.455 (IREN ahead)
Riot Platforms and Iris Energy: Risk Analysis
Riot Platforms experienced its maximum drawdown of -53.5% from 2025-01-24 to 2025-04-21. It has not yet recovered to its previous peak.
Iris Energy experienced its maximum drawdown of -60.2% from 2025-01-24 to 2025-04-08. 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 RIOT and IREN
Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. IREN had a higher Sharpe (1.71 vs 0.38), indicating better risk-adjusted performance.
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 RIOT and IREN
Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only penalizes negative volatility. IREN had better downside-adjusted returns.
A higher Sortino is better. It's particularly useful for assets with asymmetric volatility (big gains, smaller losses). Downside volatility: RIOT 50.8% vs IREN 63.0%. 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).
Full Comparison of Riot Platforms vs. Iris Energy (2025)
| Metric | RIOT | IREN |
|---|---|---|
| Total Return | +2.7% | +233.1% |
| Annualized Volatility | 80.7% | 97.2% |
| Sharpe Ratio | 0.38 | 1.71 |
| Sortino Ratio | 0.61 | 2.63 |
| Max Drawdown | -53.5% | -60.2% |
| Avg Correlation to S&P 500 | N/A | N/A |
Riot Platforms vs Iris Energy: Frequently Asked Questions
Which had higher volatility: RIOT or IREN?
IREN showed higher volatility at 97.2% annualized, compared to 80.7% for RIOT During 2025. Higher volatility meant larger price swings in both directions.
Did RIOT provide diversification when held with IREN?
RIOT and IREN were strongly correlated in 2025, with an average correlation of 0.67. This strong correlation limited diversification benefits.
Which had better risk-adjusted returns: RIOT or IREN?
IREN showed better risk-adjusted performance with a Sharpe ratio of 1.71 versus RIOT's 0.38 During 2025.
Could RIOT and IREN have been combined in a portfolio?
Yes, though allocation sizing mattered. Their strong correlation provided limited risk reduction since they tended to move together. IREN's higher volatility (97.2%) meant even small allocations can materially impact overall portfolio risk.