Frequently asked questions
What does crypto correlation mean?
Correlation measures how closely two coins move together, from −1 to +1. At +1 they move in lockstep, at 0 there’s no relationship, and at −1 they move in opposite directions. It’s calculated here from daily returns.
Why are most coins so highly correlated?
Much of the crypto market moves with Bitcoin and with overall risk appetite, so correlations between large coins are often 0.7 or higher. Coins with their own news or narratives tend to show lower correlation.
How can I use the correlation matrix?
Holding several highly correlated coins doesn’t diversify much. Low-correlation pairs can spread risk, and pairs traders look for coins that usually move together but have drifted apart.
Want to compare two coins directly? Open a chart and use Compare to overlay up to three symbols, rebased to the same starting point.