Polkadot (DOT) is 1.5× the size of Arbitrum (ARB) by market capitalisation. Over the past 1 year, ARB is ahead by 25.7 percentage points (ARB -36.3% against DOT -61.9%). Their daily returns move closely together (correlation 0.66 across 399 shared trading days). ARB has been the more volatile of the two, at 103% annualised against DOT's 88%.
ARBDOT
0.66over 399 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 | ARB | DOT |
|---|---|---|
| Max drawdown (400d) | -84.1% | -82.9% |
| Risk-adjusted return (90d) | 0.73 | 0.19 |
| Best 30 days (past year) | +157.6% | +55.9% |
| Worst 30 days (past year) | -51.6% | -44.2% |
Relative strength over 90 days: ARB outperformed DOT by 78.3% — measured on the ARB/DOT ratio, so it holds regardless of market direction.