Tether Gold (XAUT) is 1438.0× the size of GOLD (GOLD) by market capitalisation. Their daily returns move closely together (correlation 0.73 across 33 shared trading days). GOLD has been the more volatile of the two, at 352% annualised against XAUT's 24%.
GOLDXAUT
0.73over 33 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 | GOLD | XAUT |
|---|---|---|
| Max drawdown (400d) | -100.0% | -19.4% |
| Risk-adjusted return (90d) | -0.28 | -0.36 |
Relative strength over 90 days: XAUT outperformed GOLD by 100.0% — measured on the GOLD/XAUT ratio, so it holds regardless of market direction.