Legacy Frax Dollar (FRAX) is 4184.6× the size of Basis Cash (BAC) by market capitalisation. Their daily returns move barely together (correlation 0.03 across 31 shared trading days). FRAX has been the more volatile of the two, at 99% annualised against BAC's 26%.
BACFRAX
0.03over 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 | BAC | FRAX |
|---|---|---|
| Max drawdown (400d) | -5.6% | -81.3% |
| Risk-adjusted return (90d) | -0.06 | -0.33 |
Relative strength over 90 days: BAC outperformed FRAX by 18.6% — measured on the BAC/FRAX ratio, so it holds regardless of market direction.