Page 35 - Bullion World Volume 3 Issue 11 November 2023

Bullion World | Volume 3 | Issue 11 | November 2023

From January to October 2023, the expressed as a percentage deviation informed decisions in these asset
standard deviation for both asset from the mean. A higher standard classes. It's crucial to consider the
classes stands at 55 for gold and deviation signifies greater price implications of these deviations when
2599 for bitcoin. This standard fluctuations and, consequently, managing portfolios and devising
deviation can serve as an indicator increased market volatility. Investors trading strategies for gold and bitcoin
of the level of volatility present in and analysts closely monitor these in the given time frame.
the markets for gold and bitcoin, figures to assess risk and make

In comparing LBMA Gold and returns between 1% and 59% in Bitcoin consistently exhibits
Bitcoin, LBMA Gold exhibits varying all months, with its highest return significantly higher volatility compared
annualized volatility, ranging from occurring in March-23. In contrast, to LBMA Gold, leading to more
5.6% to 14.0%, with the highest Bitcoin displayed mixed performance, volatile returns that can vary widely,
volatility observed in March-23. with returns ranging from -80% (in encompassing both extreme positive
Similarly, Bitcoin shows fluctuating August-23) to 357% (in January-23), and negative outcomes. These
annualized volatility, ranging from with the highest return recorded in insights underline the risk and reward
17.3% to 53.6%, with the peak in January-23. Notably, there is no strict trade-off investors must consider,
March-23. correlation between higher volatility with Bitcoin offering the potential
and higher returns, as exemplified by for higher returns but at the cost of
Regarding performance, LBMA the significant difference in returns significantly greater volatility, while
Gold consistently generated positive between LBMA Gold and Bitcoin in LBMA Gold provides more stable
March-23, despite their similar high returns in this specific time frame.
volatility.

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