Bitcoin, Oil and S&P price action (volatility) comparison 2019-2020

This graph is a quick way to see how investors in Bitcoin and Oil need nerves of steel compared to S&P 500 investors, or diversified equity investors in general.

As short term traders are often attracted by high returns, they can sometimes forget what the difference between investing and speculating is.

This graph has the aim to show that certain investements will be extremely volatile. It also, of course, highlights the risk of a single asset vs a basket of assets.

This graph was plotted using Python, Numpy (log function to generate returns), Quandl (price data), Matplotlib (graph itself). The code was written in a Jupyter Notebook having downloaded Python Anaconda.

The code is available for anyone interested and this post has been created for educational purposes, as it is a small demo of how open source coding and data sources can improve investor clarity.

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