Tether Gold (XAUT) is 6602301.9× the size of Technology Select Sector SPDR aStock (AXLK) by market capitalisation. Their daily returns move barely together (correlation 0.27 across 31 shared trading days). Both have run at a similar volatility, around 24% annualised.
$174.4300
AXLKXAUT
0.27over 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 | AXLK | XAUT |
|---|---|---|
| Max drawdown (400d) | -9.8% | -19.4% |
| Risk-adjusted return (90d) | -0.20 | -0.20 |
Relative strength over 90 days: XAUT outperformed AXLK by 0.3% — measured on the AXLK/XAUT ratio, so it holds regardless of market direction.