Pudgy Penguins (PENGU) is 13.5× the size of cat in a dogs world (MEW) by market capitalisation. Their daily returns move closely together (correlation 0.67 across 53 shared trading days). Both have run at a similar volatility, around 101% annualised.
PENGUMEW
0.67over 53 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 | PENGU | MEW |
|---|---|---|
| Max drawdown (400d) | -82.4% | -24.8% |
| Risk-adjusted return (90d) | 0.21 | -0.09 |
| Best 30 days (past year) | +74.9% | — |
| Worst 30 days (past year) | -55.1% | — |
Relative strength over 90 days: MEW outperformed PENGU by 5.3% — measured on the PENGU/MEW ratio, so it holds regardless of market direction.