Tether Gold (XAUT) is 28113.4× the size of Lockheed Martin (Backpack Securities) (LMT) by market capitalisation. Their daily returns move barely in opposite directions (correlation -0.35 across 31 shared trading days). LMT has been the more volatile of the two, at 165% annualised against XAUT's 24%.
$597.1400
LMTXAUT
-0.35over 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 | LMT | XAUT |
|---|---|---|
| Max drawdown (400d) | -26.1% | -19.4% |
| Risk-adjusted return (90d) | 0.09 | -0.20 |
Relative strength over 90 days: LMT outperformed XAUT by 23.7% — measured on the LMT/XAUT ratio, so it holds regardless of market direction.