Cite This Comparison
"Riot Platforms vs Marathon Digital (RIOT vs MARA): Returns, Risk & Volatility (2024)." Gale Finance, December 31, 2024. https://www.gale.finance/compare/riot-vs-mara-2024 Free to use with attribution. Please link back to this page or gale.finance.
Analysis period: 2024-01-01 to 2024-12-31
Relative Performance of RIOT vs MARA (Normalized to 100)
Normalized to 100 at start date for comparison
Key Takeaways
- Total Return: RIOT delivered a -33.7% total return, while MARA returned -26.9% over the same period. MARA outperformed on total returns.
- Risk-Adjusted Return (Sharpe Ratio): RIOT had a negative Sharpe (-0.02) while MARA was positive (0.18), indicating MARA had meaningfully better risk-adjusted performance in this period.
- Volatility (Annualized): MARA was more volatile, with 107.5% annualized volatility, versus 94.7% for RIOT.
- Maximum Drawdown: MARA's maximum drawdown was -56.9%, while RIOT experienced a deeper drawdown of -63.8%.
Riot Platforms vs Marathon Digital Correlation
Riot Platforms and Marathon Digital were strongly correlated in 2024. With a correlation of 0.84, these assets tended to move together, limiting diversification benefits.
For portfolio construction, this strong correlation means holding both RIOT and MARA provides limited risk reduction — they're likely to decline together in downturns.
| Metric | Metric | Value |
|---|---|---|
| Current (30-day) | 0.67 | |
| Average (full period) | 0.84 | |
| Minimum | 0.66 | |
| Maximum | 0.96 |
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, 2024:
Difference: $687.995 (MARA ahead)
Riot Platforms and Marathon Digital: Risk Analysis
Riot Platforms experienced its maximum drawdown of -63.8% from 2024-02-14 to 2024-09-06. It has not yet recovered to its previous peak.
Marathon Digital experienced its maximum drawdown of -56.9% from 2024-02-28 to 2024-09-06. 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 MARA
Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. RIOT had a negative Sharpe (-0.02) while MARA was positive (0.18), indicating MARA 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 RIOT and MARA
Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only penalizes negative volatility. MARA 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 51.0% vs MARA 56.8%. 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. Marathon Digital (2024)
| Metric | RIOT | MARA |
|---|---|---|
| Total Return | -33.7% | -26.9% |
| Annualized Volatility | 94.7% | 107.5% |
| Sharpe Ratio | -0.02 | 0.18 |
| Sortino Ratio | -0.04 | 0.35 |
| Max Drawdown | -63.8% | -56.9% |
| Avg Correlation to S&P 500 | N/A | N/A |
Riot Platforms vs Marathon Digital: Frequently Asked Questions
Which had higher volatility: RIOT or MARA?
MARA showed higher volatility at 107.5% annualized, compared to 94.7% for RIOT During 2024. Higher volatility meant larger price swings in both directions.
Did RIOT provide diversification when held with MARA?
RIOT and MARA were strongly correlated in 2024, with an average correlation of 0.84. This strong correlation limited diversification benefits.
Which had better risk-adjusted returns: RIOT or MARA?
RIOT had a negative Sharpe (-0.02) while MARA was positive (0.18) During 2024, indicating MARA had meaningfully better risk-adjusted performance.
Could RIOT and MARA have been combined in a portfolio?
Yes, though allocation sizing mattered. Their strong correlation provided limited risk reduction since they tended to move together. MARA's higher volatility (107.5%) meant even small allocations can materially impact overall portfolio risk.