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Crypto Cross-Asset Correlation Matrix

Rolling 60m-minute correlation analysis across all tracked assets. Based on 61 data points from 1-minute mark price returns.

Correlation Matrix

BTCETHHYPESOL
BTC1.000.910.510.85
ETH0.911.000.500.90
HYPE0.510.501.000.48
SOL0.850.900.481.00

Pair Correlations

PairCorrelationRelationship
BTC/ETH0.906Strong
BTC/SOL0.854Strong
BTC/HYPE0.508Moderate
ETH/SOL0.904Strong
ETH/HYPE0.503Moderate
HYPE/SOL0.484Weak

Why Correlations Matter for Trading

Cross-asset correlations measure how assets co-move. In crypto:

  • High positive correlation (>0.8): Assets move together — diversification is limited
  • Low correlation (0.2-0.5): Good for portfolio diversification
  • Negative correlation (<0): Assets move oppositely — natural hedges
  • Correlation breakdown: When historically correlated assets diverge, it may signal a structural change or pair-trading opportunity

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