Crypto Correlation Matrix
Pairwise Pearson correlation of daily log-returns across the top 15 crypto assets. Values range from -100% (opposite moves) to +100% (identical moves). Click any cell to highlight.
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How It Works
This matrix shows how closely crypto assets move together, using Pearson correlation on daily log-returns from Binance. Values near +100% mean two assets move in sync; values near 0% mean they move independently. Use this to diversify your portfolio, identify hedging opportunities, and spot regime shifts in real time.
How traders use correlation data to make smarter decisions:
Portfolio Diversification
Find pairs with low correlation (below 50%) to build a diversified portfolio. If two assets are highly correlated, holding both doubles your exposure to the same risk. Look for assets in the blue/red range of the matrix — these provide genuine diversification. For example, if TRX shows only 30-40% correlation with large caps like BTC and ETH, adding TRX to a BTC-heavy portfolio reduces overall volatility without sacrificing upside potential.
Pairs Trading & Hedging
Identify highly correlated pairs (90%+) for pairs trading strategies. When two highly correlated assets temporarily diverge in price, go long on the underperformer and short the outperformer — they tend to revert to their historical relationship. Use the timeframe selector to confirm the correlation is stable across 30D, 90D, and 1Y windows before entering a trade. Unstable correlations that shift between timeframes signal a regime change and should be avoided.
Regime Change Detection
Compare correlations across different timeframes to detect market regime shifts. If a pair shows 90% correlation on the 1Y view but only 50% on the 30D view, the relationship is breaking down — this often precedes major relative price moves. Similarly, if historically uncorrelated assets suddenly show 85%+ correlation on the 30D view, the market may be entering a risk-off / capitulation phase where "everything moves together."
Switch between timeframes frequently. A pair that looks diversified on a 1-year view may be highly correlated in the short term (and vice versa). Always check the 30D correlation before making allocation decisions — it reflects the current market regime.