Fables (FABLES) is 202.6× the size of Arrowfarm (ARROWFARM) by market capitalisation. Their daily returns move barely together (correlation 0.05 across 21 shared trading days). ARROWFARM has been the more volatile of the two, at 666% annualised against FABLES's 236%.
ARROWFARMFABLES
0.05over 21 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 | ARROWFARM | FABLES |
|---|---|---|
| Max drawdown (400d) | -98.8% | -47.3% |
| Risk-adjusted return (90d) | -0.14 | -0.14 |
Relative strength over 90 days: FABLES outperformed ARROWFARM by 28.6% — measured on the ARROWFARM/FABLES ratio, so it holds regardless of market direction.