Cite This Comparison
"Solana vs Tesla (SOL vs TSLA): Returns, Risk & Volatility (2025)." Gale Finance, December 31, 2025. https://www.gale.finance/compare/sol-vs-tsla-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 SOL vs TSLA (Normalized to 100)
Normalized to 100 at start date for comparison
Key Takeaways
- Total Return: SOL delivered a -35.5% total return, while TSLA returned +18.6% over the same period. TSLA outperformed on total returns.
- Risk-Adjusted Return (Sharpe Ratio): SOL had a negative Sharpe (-0.13) while TSLA was positive (0.52), indicating TSLA had meaningfully better risk-adjusted performance in this period.
- Volatility (Annualized): SOL was more volatile, with 86.2% annualized volatility, versus 63.3% for TSLA.
- Maximum Drawdown: TSLA's maximum drawdown was -48.2%, while SOL experienced a deeper drawdown of -59.8%.
Solana vs Tesla Correlation
Solana and Tesla were weakly correlated in 2025. With a correlation of 0.06, these assets showed meaningful independence, offering diversification benefits when held together.
For portfolio construction, this weak correlation suggests that combining SOL and TSLA could reduce overall portfolio variance. However, correlations can increase during market stress.
| Metric | Metric | Value |
|---|---|---|
| Current (30-day) | 0.17 | |
| Average (full period) | 0.06 | |
| Minimum | -0.42 | |
| Maximum | 0.44 |
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: $5,409.584 (TSLA ahead)
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Solana and Tesla: Risk Analysis
Solana experienced its maximum drawdown of -59.8% from 2025-01-19 to 2025-04-09. It has not yet recovered to its previous peak.
Tesla experienced its maximum drawdown of -48.2% from 2025-01-15 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 SOL and TSLA
Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. SOL had a negative Sharpe (-0.13) while TSLA was positive (0.52), indicating TSLA 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 SOL and TSLA
Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only penalizes negative volatility. TSLA 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: SOL 54.2% vs TSLA 40.8%. 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 Solana vs. Tesla (2025)
| Metric | SOL | TSLA |
|---|---|---|
| Total Return | -35.5% | +18.6% |
| Annualized Volatility | 86.2% | 63.3% |
| Sharpe Ratio | -0.13 | 0.52 |
| Sortino Ratio | -0.21 | 0.81 |
| Max Drawdown | -59.8% | -48.2% |
| Avg Correlation to S&P 500 | N/A | N/A |
Solana vs Tesla: Frequently Asked Questions
Which had higher volatility: SOL or TSLA?
SOL showed higher volatility at 86.2% annualized, compared to 63.3% for TSLA During 2025. Higher volatility meant larger price swings in both directions.
Did SOL provide diversification when held with TSLA?
SOL and TSLA were weakly correlated in 2025, with an average correlation of 0.06. This weak correlation suggested meaningful diversification benefits when held together.
Which had better risk-adjusted returns: SOL or TSLA?
SOL had a negative Sharpe (-0.13) while TSLA was positive (0.52) During 2025, indicating TSLA had meaningfully better risk-adjusted performance.
Could SOL and TSLA have been combined in a portfolio?
Yes, though allocation sizing mattered. Their weak correlation could have meaningfully reduced overall portfolio variance. SOL's higher volatility (86.2%) meant even small allocations can materially impact overall portfolio risk.