PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan

Tether (USDT-USD) Sharpe Ratio: -0.31

Cryptocurrency · Currency in USD · Last updated Jun 3, 2026

Tether (USDT) is a stablecoin cryptocurrency that is pegged to the US dollar at a 1:1 ratio. This means that for every Tether token in circulation, there should be an equivalent amount of US dollars held in reserve to back it up. It is designed to provide the benefits of cryptocurrencies, such as fast and secure transactions, while minimizing the volatility that is typically associated with other cryptocurrencies.

USDT-USD's Sharpe Ratio of -0.31 indicates that for each unit of volatility, it generates -0.31 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 3, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets.

USDT-USD Sharpe Ratio Rank

USDT-USD Sharpe Ratio Rank: 73.774
Above Average

USDT-USD ranks above 73.7% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating above-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Above-average risk-adjusted returns with room for improvement
  • Compare against category peers to gauge relative positioning
  • Monitor for movement toward top tier or decline toward median
  • Consider pairing with top-tier holdings to improve portfolio efficiency

USDT-USD Sharpe Ratio Market Positioning

The chart shows USDT-USD's Sharpe Ratio relative to all cryptocurrencies on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): -0.85 or lower
  • Yellow zone (middle 50%): -0.85 to -0.25
  • Green zone (top 25%): -0.25 or higher
  • Top 1%: 3.43+
  • Median: -0.65 — half of all investments score higher

How it compares to other similar cryptocurrencies

The table compares USDT-USD's Sharpe Ratio with other major cryptocurrencies by market capitalization across multiple time periods.

Data shows 1-, 3-, and 5-year periods, plus each cryptocurrency's all-time average, as of Jun 3, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
ZEC-USDZCash6.93
XAUT-USDTether Gold USD1.19
TRX-USDTronix0.81
DASH-USDDigitalCash0.49
LEO-USDUNUS SED LEO0.35
NEAR-USDNEAR Protocol0.09
MKR-USDMaker0.05
DCR-USDDecred-0.01
BNB-USDBinance Coin-0.04
TUSD-USDTrueUSD-0.04
USDT-USDTether-0.31

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows USDT-USD's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when USDT-USD consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

Loading charts...

Sharpe Ratio Calculator

How does USDT-USD fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

Analyze Your Portfolio