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 0.58 0.28 0.02 0.01 0.06 0.06 0.06 -0.01
ETH 0.58 1.00 -0.01
XRP 0.28 1.00 -0.04
GLD 0.02 1.00 -0.41
SLV 0.01 1.00 -0.42
^DJI 0.06 1.00 0.01
^GSPC 0.06 1.00 -0.02
^IXIC 0.06 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 0.58 0.53 0.28 0.67 0.11 0.54 0.33 0.46 0.53 0.58 0.64 0.56 0.48 0.47
ETH 0.58 1.00 0.54 0.72 0.30 0.64
BNB 0.53 0.54 1.00 0.41 0.47 0.20 0.54 0.51 0.41 0.46 0.52 0.47 0.45 0.49 0.41
XRP 0.28 0.41 1.00 0.64 0.23 0.50
ADA 0.67 0.72 0.47 0.64 1.00 0.34 0.56 0.67 0.51 0.59 0.62 0.59 0.61 0.40 0.70
DOGE 0.11 0.30 0.20 0.23 0.34 1.00 0.20 0.05 0.25 0.29 0.28 0.32 0.35 0.19 0.35
MATIC 0.54 0.54 0.56 0.20 1.00 0.54
LTC 0.33 0.51 0.67 0.05 1.00 0.60
TRX 0.46 0.41 0.51 0.25 1.00 0.46
LINK 0.53 0.46 0.59 0.29 1.00 0.61
ATOM 0.58 0.64 0.52 0.50 0.62 0.28 0.54 0.60 0.46 0.61 1.00 0.53 0.54 0.38 0.55
XMR 0.64 0.47 0.59 0.32 0.53 1.00
ETC 0.56 0.45 0.61 0.35 0.54 1.00
OKB 0.48 0.49 0.40 0.19 0.38 1.00
XLM 0.47 0.41 0.70 0.35 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
BEAM PAXG -0.12 574
BTM XAUT -0.11 334
DASH XAUT -0.11 334
BSV XAUT -0.10 334
BEAM XAUT -0.09 334
BSV PAXG -0.08 574
BAT XAUT -0.07 334
BNB PAXG -0.07 574
BNB XAUT -0.07 334
BTM PAXG -0.06 574
ALGO XAUT -0.06 334
BTT FTT -0.06 841
DOGE XAUT -0.06 334

The strongest crypto assets correlations (measured in BTC)

token1 token2 correlation days
BCH BSV 0.50 2386
ATOM XTZ 0.48 2230
ADA XLM 0.47 2800
ATOM KAVA 0.47 1918
ALGO ATOM 0.45 2172
ADA SNT 0.45 2800
COMP SNX 0.44 1804
ALGO LINK 0.44 2172
BAT ONT 0.44 2634
BAT KAVA 0.44 1918
DASH XMR 0.43 2899
ALGO XTZ 0.43 2172
BAT MIOTA 0.43 2894
ATOM BAT 0.43 2230
ALGO VET 0.43 2172