Cryptocurrencies correlations
Knowledge of the correlation coefficient between assets gives a wide spectrum of advantages.
Modern portfolio theory allows you to create and optimise a portfolio with uncorrelated assets.
Negative correlation provides a possibility to hedge positions.
How to identify digital asset correlations
Correlation chart
The tool can help to understand the correlation coefficient changes in time.
Choosing the assets and the time frame you are interested in, brings the chart with the token rates
and the correlation changes.
Correlation matrix
The tool helps to preselect crypto assets for the cryptocurrencies portfolio.
Select the assets you want to be compared with to see the correlation strengths between all of them.
Correlations with a coin or token
There is also the way to find the relation in returns from the particular crypto asset.
Or choose the asset from the list:
Stocks, precious metals and cryptocurrencies
Basing on past returns, crypto assets have not revealed any signs of correlation with stock indexes and
metals in the long run.
The matrix of correlations between different asset classes confirms the thesis.
BTC | ETH | XRP | GLD | SLV | ^DJI | ^GSPC | ^IXIC | DX-Y.NYB | |
---|---|---|---|---|---|---|---|---|---|
BTC | 1.00 | 0.57 | 0.28 | 0.02 | 0.01 | 0.06 | 0.06 | 0.06 | -0.01 |
ETH | 0.57 | 1.00 | 0.31 | 0.08 | 0.09 | 0.11 | 0.11 | 0.12 | -0.01 |
XRP | 0.28 | 0.31 | 1.00 | 0.05 | 0.05 | 0.08 | 0.08 | 0.09 | -0.04 |
GLD | 0.02 | 0.08 | 0.05 | 1.00 | 0.80 | 0.03 | 0.04 | 0.03 | -0.41 |
SLV | 0.01 | 0.09 | 0.05 | 0.80 | 1.00 | 0.19 | 0.21 | 0.20 | -0.42 |
^DJI | 0.06 | 0.11 | 0.08 | 0.03 | 0.19 | 1.00 | 0.97 | 0.78 | 0.01 |
^GSPC | 0.06 | 0.11 | 0.08 | 0.04 | 0.21 | 0.97 | 1.00 | 0.85 | -0.02 |
^IXIC | 0.06 | 0.12 | 0.09 | 0.03 | 0.20 | 0.78 | 0.85 | 1.00 | -0.00 |
DX-Y.NYB | -0.01 | -0.01 | -0.04 | -0.41 | -0.42 | 0.01 | -0.02 | -0.00 | 1.00 |
However the relation has changed since 12/03/2020 crash.
It is visible when looking at the chart comparing BTC and S&P 500 Index from the Black Thursday.
High market capitalisation cryptocurrencies correlations
BTC | ETH | BNB | XRP | ADA | DOGE | MATIC | LTC | TRX | LINK | ATOM | XMR | ETC | OKB | XLM | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
BTC | 1.00 | 0.57 | 0.53 | 0.28 | 0.68 | 0.11 | 0.53 | 0.32 | 0.46 | 0.52 | 0.57 | 0.64 | 0.55 | 0.48 | 0.46 |
ETH | 0.57 | 1.00 | 0.54 | 0.31 | 0.73 | 0.28 | 0.60 | 0.54 | 0.47 | 0.60 | 0.63 | 0.66 | 0.65 | 0.50 | 0.47 |
BNB | 0.53 | 0.54 | 1.00 | 0.41 | 0.49 | 0.19 | 0.54 | 0.51 | 0.41 | 0.46 | 0.51 | 0.47 | 0.45 | 0.49 | 0.41 |
XRP | 0.28 | 0.31 | 0.41 | 1.00 | 0.63 | 0.22 | 0.46 | 0.34 | 0.43 | 0.46 | 0.49 | 0.50 | 0.37 | 0.39 | 0.61 |
ADA | 0.68 | 0.73 | 0.49 | 0.63 | 1.00 | 0.34 | 0.57 | 0.69 | 0.52 | 0.58 | 0.63 | 0.61 | 0.61 | 0.41 | 0.71 |
DOGE | 0.11 | 0.28 | 0.19 | 0.22 | 0.34 | 1.00 | 0.19 | 0.05 | 0.25 | 0.28 | 0.27 | 0.32 | 0.34 | 0.18 | 0.34 |
MATIC | 0.53 | 0.60 | 0.54 | 0.46 | 0.57 | 0.19 | 1.00 | 0.55 | 0.42 | 0.54 | 0.53 | 0.47 | 0.49 | 0.38 | 0.51 |
LTC | 0.32 | 0.54 | 0.51 | 0.34 | 0.69 | 0.05 | 0.55 | 1.00 | 0.45 | 0.52 | 0.60 | 0.62 | 0.61 | 0.47 | 0.49 |
TRX | 0.46 | 0.47 | 0.41 | 0.43 | 0.52 | 0.25 | 0.42 | 0.45 | 1.00 | 0.38 | 0.46 | 0.44 | 0.40 | 0.40 | 0.41 |
LINK | 0.52 | 0.60 | 0.46 | 0.46 | 0.58 | 0.28 | 0.54 | 0.52 | 0.38 | 1.00 | 0.60 | 0.48 | 0.50 | 0.39 | 0.48 |
ATOM | 0.57 | 0.63 | 0.51 | 0.49 | 0.63 | 0.27 | 0.53 | 0.60 | 0.46 | 0.60 | 1.00 | 0.54 | 0.53 | 0.37 | 0.54 |
XMR | 0.64 | 0.66 | 0.47 | 0.50 | 0.61 | 0.32 | 0.47 | 0.62 | 0.44 | 0.48 | 0.54 | 1.00 | 0.58 | 0.43 | 0.52 |
ETC | 0.55 | 0.65 | 0.45 | 0.37 | 0.61 | 0.34 | 0.49 | 0.61 | 0.40 | 0.50 | 0.53 | 0.58 | 1.00 | 0.44 | 0.45 |
OKB | 0.48 | 0.50 | 0.49 | 0.39 | 0.41 | 0.18 | 0.38 | 0.47 | 0.40 | 0.39 | 0.37 | 0.43 | 0.44 | 1.00 | 0.37 |
XLM | 0.46 | 0.47 | 0.41 | 0.61 | 0.71 | 0.34 | 0.51 | 0.49 | 0.41 | 0.48 | 0.54 | 0.52 | 0.45 | 0.37 | 1.00 |
negatively correlated and uncorrelated altcoins (measured in BTC)
token1 | token2 | correlation | days |
---|---|---|---|
LTC | XAUT | -0.22 | 334 |
BCH | XAUT | -0.20 | 334 |
PAXG | SNT | -0.18 | 574 |
SNT | XAUT | -0.16 | 334 |
BCH | PAXG | -0.15 | 574 |
ONT | XAUT | -0.15 | 334 |
XAUT | ZIL | -0.15 | 334 |
XAUT | ZEC | -0.14 | 334 |
REP | XAUT | -0.14 | 334 |
EOS | XAUT | -0.13 | 334 |
REN | XAUT | -0.13 | 334 |
BEAM | PAXG | -0.12 | 574 |
LTC | PAXG | -0.12 | 574 |
ONT | PAXG | -0.12 | 574 |
BTM | XAUT | -0.11 | 334 |
The strongest crypto assets correlations (measured in BTC)
token1 | token2 | correlation | days |
---|---|---|---|
PAXG | XAUT | 0.91 | 334 |
NEO | ONT | 0.63 | 2472 |
ONT | QTUM | 0.53 | 2472 |
EOS | ONT | 0.50 | 2472 |
BCH | BSV | 0.50 | 2224 |
HT | OKB | 0.49 | 2416 |
MIOTA | ONT | 0.48 | 2472 |
XMR | ZEC | 0.47 | 2737 |
ATOM | XTZ | 0.47 | 2068 |
ADA | XLM | 0.47 | 2638 |
ADA | SNT | 0.47 | 2638 |
ATOM | KAVA | 0.47 | 1859 |
ICX | ONT | 0.46 | 2472 |
KAVA | XTZ | 0.45 | 1859 |
KAVA | ONT | 0.45 | 1859 |