Correlation · MatrixWhat Really Moves Together
Correlation in 30 seconds
Correlation measures how often two things move in the same direction on the same day, from −1 (always opposite) through 0 (unrelated) to +1 (always together). Owning things that do not move together is what makes a portfolio steadier.
Above 0.7
They mostly move together. Holding both adds little diversification: when one falls, the other usually does too.
Around 0
Unrelated day to day. A mix of these smooths the ride without giving up return.
Below 0
They tend to move in opposite directions, like a hedge. Stocks and long-term bonds were often like this before 2022; they have not always been since.
It changes
Correlations jump in crashes, when many things fall together. Click any square to see the 60-day correlation through time, not just the average.
The exact method
- Returns
- Daily percentage changes in the closing price, on days when both instruments traded. Coins trade every day; only days when both have a price are used.
- Correlation
- Pearson correlation of those daily returns over the period you pick.
- Rolling chart
- The same calculation over each trailing 60 trading days, for the pair you click. It covers the period you pick (at least a year, so a 3-month view still shows how the pair usually behaves), and the dashed line is the figure in the matrix.
- Average correlation
- The mean of every pair in the matrix: the lower it is, the more the group diversifies itself.
Good to know. Past correlations describe how things moved, not how they will. This is not advice to buy or sell.
For education only. Data comes from third-party price sources and may be delayed or wrong. Past patterns do not predict future results, and nothing here is investment advice or a recommendation to buy, sell or hold anything. See the Terms and Disclaimer.