$BNB
BNB and ETH exhibit a moderate to strong positive price correlation, typically ranging from 0.68 to 0.92 based on various analyses, meaning their prices often move in tandem due to shared market influences like overall crypto sentiment and BTC dominance.   
Over the past 12 months, their correlation stands at 0.68, indicating moderate co-movement; however, studies show higher values like 0.88 or even 0.948 in certain datasets, suggesting persistence in long-range trends.   
BNB’s lower volatility (21.52% annualized) compared to ETH’s (29.21%) contributes to this dynamic, with BNB showing better risk-adjusted metrics like a Sharpe ratio of -0.13 versus ETH’s -0.34. 
Returns highlight divergence: Over 1 year, BNB declined -6.91% while ETH fell -26.74%, reflecting BNB’s resilience tied to Binance ecosystem growth amid ETH’s challenges like network upgrades and competition.  
Drawdowns are deeper for ETH (max -94.01% since inception, current -59.50%) than BNB (-79.74% max, -53.91% current), underscoring ETH’s higher risk profile despite similar market exposures. 
Qualitatively, both assets correlate due to altcoin beta to BTC, but BNB’s utility in DeFi and trading fees on Binance can decouple it during exchange-specific events, while ETH is more sensitive to layer-2 scaling and regulatory shifts. $ETH
