Volatility and correlation

What the numbers on every card mean and how each is computed.

3 min read · pre-launch

Every card and pair page prints two statistics, both from daily closes.

Realised volatility

σ = standard deviation of the daily log returns × √365

Annualised over calendar days, because these tokens trade every day on chain.

Annualised over calendar days, because tokenized shares trade every day on chain. A spread's volatility is usually far lower than either leg's: that is the point of trading it.

Correlation

Pearson's correlation of the two legs' daily log returns. Close to 1, the pair moves as one and the spread is quiet; near 0, the legs go their own way and the spread is as wild as its wilder leg. The Tide publishes both numbers every week, per pair.