Tether Gold (XAUT) is 38759.3× the size of Shopify (Backpack Securities) (SHOP) by market capitalisation. Their daily returns move barely together (correlation 0.01 across 31 shared trading days). SHOP has been the more volatile of the two, at 70% annualised against XAUT's 24%.
$152.2000
SHOPXAUT
0.01over 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 | SHOP | XAUT |
|---|---|---|
| Max drawdown (400d) | -13.5% | -19.4% |
| Risk-adjusted return (90d) | 0.30 | -0.20 |
Relative strength over 90 days: SHOP outperformed XAUT by 31.6% — measured on the SHOP/XAUT ratio, so it holds regardless of market direction.