Coin correlations
What it shows
How the project's price moves relative to other coins, grouped into positive, neutral and negative correlations with a coefficient from -1 to +1. Helps you understand what drives the project and how to diversify exposure.
How to read it
Read the groups together: if the project is very strongly correlated with BTC, its moves are mostly a derivative of the market rather than its own narrative. Switch the period (1H–30D), since the links are unstable. Action: use correlations to gauge diversification, as a portfolio of only strongly positively correlated assets falls together in market weakness.
Parameters
- Correlation coefficient (-1 to +1)
- Measures how tightly two coins move together: +1 perfectly in sync, -1 perfectly opposite.
- Neutral reading: Near 0: independent moves; the farther from 0, the stronger the link.
- Positive correlation
- Coins that rise and fall together with the project (coefficient above 0.3).
- Positive reading: Positive correlation with a strong asset can support the project in a bull market.
- Negative reading: Very high correlation means no diversification, everything falls together.
- Negative correlation
- Coins that move opposite to the project (coefficient below -0.3).
- Positive reading: Negative correlation can balance a portfolio when the project weakens.
- Neutral reading: Strongly negative links in crypto are rare and can be unstable.
- Strength label & period
- A strength label (weak / moderate / strong / very strong) computed for the chosen period (1H–30D).
- Neutral reading: Correlations change with the period: check several horizons, not just one.
Example
The project has a +0.95 coefficient with ETH (very strong) and near 0 with BTC: it moves almost like ETH, so it offers no diversification versus the Ethereum ecosystem. A -0.4 coefficient with another coin means partial offsetting of moves.