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
ETH 1.00
XRP 1.00
GLD 1.00
SLV 1.00
^DJI 1.00
^GSPC 1.00
^IXIC 1.00
DX-Y.NYB 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 0.67 0.58
ETH 1.00 0.72 0.64
BNB 1.00 0.48 0.52
XRP 1.00 0.65 0.50
ADA 0.67 0.72 0.48 0.65 1.00 0.35 0.57 0.67 0.51 0.59 0.62 0.58 0.61 0.37 0.70
DOGE 0.35 1.00 0.29
MATIC 0.57 1.00 0.54
LTC 0.67 1.00 0.60
TRX 0.51 1.00 0.46
LINK 0.59 1.00 0.61
ATOM 0.58 0.64 0.52 0.50 0.62 0.29 0.54 0.60 0.46 0.61 1.00 0.53 0.54 0.34 0.55
XMR 0.58 0.53 1.00
ETC 0.61 0.54 1.00
OKB 0.37 0.34 1.00
XLM 0.70 0.55 1.00

negatively correlated and uncorrelated altcoins (measured in BTC)

token1 token2 correlation days
BCH XAUT -0.20 334
BCH PAXG -0.15 574
BAT XAUT -0.07 334
ALGO XAUT -0.06 334
ALGO PAXG -0.05 574
ADA FTT -0.04 2451
BAT PAXG -0.04 574
ADA PAXG -0.04 574
BAT OMG -0.03 3004
BCH VET -0.03 2906
ATOM FTT -0.03 2319
ATOM XAUT -0.03 334
ALGO FTT -0.02 2261
ATOM PAXG -0.02 574
BCH FTT -0.02 2451

The strongest crypto assets correlations (measured in BTC)

token1 token2 correlation days
BCH BSV 0.49 2475
ATOM XTZ 0.48 2319
ADA XLM 0.47 2889
ATOM KAVA 0.47 1918
ALGO ATOM 0.45 2261
ALGO LINK 0.45 2261
ADA SNT 0.44 2889
BAT KAVA 0.44 1918
BAT ONT 0.43 2723
BAT MIOTA 0.43 2983
ATOM BAT 0.43 2319
ALGO BAT 0.43 2261
ALGO VET 0.42 2261
BCH ETC 0.42 2950
ALGO XTZ 0.42 2261