Cite This Comparison
"Silver vs Platinum (XAG vs XPT): Returns, Risk & Volatility (2023)." Gale Finance, December 31, 2023. https://www.gale.finance/compare/xag-vs-xpt-2023 Free to use with attribution. Please link back to this page or gale.finance.
Analysis period: 2023-01-01 to 2023-12-31
Relative Performance of XAG vs XPT (Normalized to 100)
Normalized to 100 at start date for comparison
Key Takeaways
- Total Return: XAG delivered a -0.9% total return, while XPT returned -8.4% over the same period. XAG outperformed on total returns.
- Risk-Adjusted Return (Sharpe Ratio): Both Sharpe ratios were negative (XAG -0.10 vs XPT -0.43), meaning both underperformed the risk-free rate; XAG was less negative.
- Volatility (Annualized): XAG was more volatile, with 24.6% annualized volatility, versus 24.1% for XPT.
- Maximum Drawdown: XAG's maximum drawdown was -19.5%, while XPT experienced a deeper drawdown of -24.9%.
Silver vs Platinum Correlation
Silver and Platinum were moderately correlated in 2023. With a correlation of 0.54, these assets showed 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 | Metric | Value |
|---|---|---|
| Current (30-day) | 0.33 | |
| Average (full period) | 0.54 | |
| Minimum | 0.14 | |
| Maximum | 0.88 |
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, 2023:
Difference: $752.841 (XAG ahead)
Silver and Platinum: Risk Analysis
Silver experienced its maximum drawdown of -19.5% from 2023-05-04 to 2023-10-05. It has not yet recovered to its previous peak.
Platinum experienced its maximum drawdown of -24.9% from 2023-04-21 to 2023-11-10. 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 XAG and XPT
Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. Both Sharpe ratios were negative (XAG -0.10 vs XPT -0.43), meaning both underperformed the risk-free rate; XAG was less negative.
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 XAG and XPT
Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only penalizes negative volatility. XAG 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: XAG 15.9% vs XPT 14.9%. 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 Silver vs. Platinum (2023)
| Metric | XAG | XPT |
|---|---|---|
| Total Return | -0.9% | -8.4% |
| Annualized Volatility | 24.6% | 24.1% |
| Sharpe Ratio | -0.10 | -0.43 |
| Sortino Ratio | -0.15 | -0.69 |
| Max Drawdown | -19.5% | -24.9% |
| Avg Correlation to S&P 500 | N/A | N/A |
Silver vs Platinum: Frequently Asked Questions
Which had higher volatility: XAG or XPT?
XAG showed higher volatility at 24.6% annualized, compared to 24.1% for XPT During 2023. Higher volatility meant larger price swings in both directions.
Did XAG provide diversification when held with XPT?
XAG and XPT were moderately correlated in 2023, with an average correlation of 0.54. This offered some diversification benefit, though they still tended to move together during major market moves.
Which had better risk-adjusted returns: XAG or XPT?
Both assets posted negative Sharpe ratios During 2023 (XAG -0.10 vs XPT -0.43), meaning both underperformed the risk-free rate; XAG was less negative.
Could XAG and XPT have been combined in a portfolio?
Yes, though allocation sizing mattered. Their moderate correlation offered some diversification benefits. XAG's higher volatility (24.6%) meant even small allocations can materially impact overall portfolio risk.