Riot Platforms vs Marathon Digital (RIOT vs MARA): Returns, Risk & Volatility (2025)

Reviewed by Sid Kalla CFA Charterholder

TL;DR: In 2025, RIOT returned +2.7% while MARA returned -54.3%. RIOT showed better risk-adjusted returns (Sharpe: 0.38). MARA was less volatile (78.4% vs 80.7%).

Analysis period: 2025-01-01 to 2025-12-31

RIOT Total Return

↑ +2.7%

MARA Total Return

↓ -54.3%

Relative Performance of RIOT vs MARA (Normalized to 100)

RIOT MARA

Normalized to 100 at start date for comparison

Key Takeaways

Total Return: RIOT delivered a +2.7% total return, while MARA returned -54.3% over the same period. RIOT outperformed on total returns.
Risk-Adjusted Return (Sharpe Ratio): MARA had a negative Sharpe (-0.68) while RIOT was positive (0.38), indicating RIOT had meaningfully better risk-adjusted performance in this period.
Volatility (Annualized): RIOT was more volatile, with 80.7% annualized volatility, versus 78.4% for MARA.
Maximum Drawdown: RIOT's maximum drawdown was -53.5%, while MARA experienced a deeper drawdown of -60.7%.

Riot Platforms vs Marathon Digital Correlation

0.74 Average Correlation

Riot Platforms and Marathon Digital were strongly correlated in 2025. With a correlation of 0.74, 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)		0.80
Average (full period)		0.74
Minimum		0.43
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:

RIOT $10,267.423 +2.7%

MARA $4,572.301 -54.3%

Difference: $5,695.122 (RIOT ahead)

Riot Platforms and Marathon Digital: 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.

Marathon Digital experienced its maximum drawdown of -60.7% from 2025-10-15 to 2025-12-31. 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

RIOT Sharpe Ratio

↑ 0.38

MARA Sharpe Ratio

↓ -0.68

Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. MARA had a negative Sharpe (-0.68) while RIOT was positive (0.38), indicating RIOT 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

RIOT Sortino Ratio

↑ 0.61

MARA Sortino Ratio

↓ -1.10

Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only penalizes negative volatility. RIOT 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 MARA 48.6%. 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 (2025)

Metric	RIOT	MARA
Total Return	+2.7%	-54.3%
Annualized Volatility	80.7%	78.4%
Sharpe Ratio	0.38	-0.68
Sortino Ratio	0.61	-1.10
Max Drawdown	-53.5%	-60.7%
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?

RIOT showed higher volatility at 80.7% annualized, compared to 78.4% for MARA During 2025. Higher volatility meant larger price swings in both directions.

Did RIOT provide diversification when held with MARA?

RIOT and MARA were strongly correlated in 2025, with an average correlation of 0.74. This strong correlation limited diversification benefits.

Which had better risk-adjusted returns: RIOT or MARA?

MARA had a negative Sharpe (-0.68) while RIOT was positive (0.38) During 2025, indicating RIOT 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. RIOT's higher volatility (80.7%) meant even small allocations can materially impact overall portfolio risk.

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