AI Correlations
What it shows
The most strongly correlated coin pairs with a 7-day Pearson coefficient (from -1 to +1) and direction arrows. It shows which assets move together and which move opposite.
How to read it
Correlation helps you understand diversification: holding several coins correlated near +1 is effectively one big position, since they all fall together. Negatively correlated pairs can offset each other. Practical takeaway: if your portfolio is built from assets near +1, real risk is higher than it looks. Seek deliberate diversification.
Parameters
- Correlation coefficient
- A number from -1 to +1: +1 = perfectly aligned moves, -1 = perfectly opposite, 0 = no relationship.
- Positive reading: Values near -1 are negative correlation, which is useful for diversification and hedging.
- Negative reading: Values near +1 (green): coins move almost identically, little diversification.
- Neutral reading: Near 0: no stable relationship between the pair.
- Direction arrows
- More arrows mean stronger correlation (↑↑↑ very strong positive, ↓↓↓ very strong negative).
- Neutral reading: A visual shorthand for coefficient strength, allowing a fast read without the number.
Example
An ETH ↔ SOL pair at +0.95 (↑↑↑) means they move almost identically, so holding both adds little diversification. A -0.6 coefficient between two assets suggests one may soften the other's moves.