Aave (AAVE) is 84393.8× the size of Pledge Finance (PLG) by market capitalisation. Their daily returns move barely together (correlation 0.05 across 31 shared trading days). PLG has been the more volatile of the two, at 181% annualised against AAVE's 87%.
PLGAAVE
0.05over 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 | PLG | AAVE |
|---|---|---|
| Max drawdown (400d) | -68.5% | -79.5% |
| Risk-adjusted return (90d) | -0.38 | 0.51 |
| Best 30 days (past year) | — | +56.3% |
| Worst 30 days (past year) | — | -42.7% |
Relative strength over 90 days: AAVE outperformed PLG by 60.1% — measured on the PLG/AAVE ratio, so it holds regardless of market direction.