Tether Gold (XAUT) is 17755.8× the size of Backed HIGH € High Yield Corp Bond (BHIGH) by market capitalisation. Their daily returns move barely together (correlation 0.30 across 31 shared trading days). XAUT has been the more volatile of the two, at 24% annualised against BHIGH's 8%.
$6.9900
BHIGHXAUT
0.30over 31 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 | BHIGH | XAUT |
|---|---|---|
| Max drawdown (400d) | -3.5% | -19.4% |
| Risk-adjusted return (90d) | -0.46 | -0.20 |
Relative strength over 90 days: BHIGH outperformed XAUT by 1.3% — measured on the BHIGH/XAUT ratio, so it holds regardless of market direction.