Blockchain Capital (BCAP) and Tether Gold (XAUT) compared side by side. Their daily returns move barely in opposite directions (correlation -0.05 across 44 shared trading days). XAUT has been the more volatile of the two, at 24% annualised against BCAP's 6%.
BCAPXAUT
-0.05over 44 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 | BCAP | XAUT |
|---|---|---|
| Max drawdown (400d) | -2.1% | -19.4% |
| Risk-adjusted return (90d) | -0.15 | -0.36 |
Relative strength over 90 days: BCAP outperformed XAUT by 4.8% — measured on the BCAP/XAUT ratio, so it holds regardless of market direction.