Tether Gold (XAUT) is 2021.6× the size of NonKyotoProtocol (NKP) by market capitalisation. Their daily returns move loosely together (correlation 0.44 across 39 shared trading days). NKP has been the more volatile of the two, at 79% annualised against XAUT's 24%.
NKPXAUT
0.44over 39 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 | NKP | XAUT |
|---|---|---|
| Max drawdown (400d) | -37.3% | -19.4% |
| Risk-adjusted return (90d) | -0.46 | -0.36 |
Relative strength over 90 days: XAUT outperformed NKP by 28.5% — measured on the NKP/XAUT ratio, so it holds regardless of market direction.