Velvet (VELVET) is 187.3× the size of A.T.M. by BaseVol (ATM) by market capitalisation. Their daily returns move loosely together (correlation 0.36 across 30 shared trading days). VELVET has been the more volatile of the two, at 157% annualised against ATM's 103%.
ATMVELVET
0.36over 30 shared trading days
Measured on daily returns rather than on prices. Two assets that both simply trend upward score near 1.0 on raw prices whether or not they move together, so returns are what answer the question people mean by correlation.
| Metric | ATM | VELVET |
|---|---|---|
| Max drawdown (400d) | -56.6% | -53.5% |
| Risk-adjusted return (90d) | -0.23 | -0.30 |
Relative strength over 90 days: ATM outperformed VELVET by 60.5% — measured on the ATM/VELVET ratio, so it holds regardless of market direction.