Portfolio correlation matrix
What it shows
A correlation matrix of your positions' daily returns. Each cell shows how two coins moved together: +1 = same direction, 0 = independent, −1 = opposite. It shows whether your diversification is real or only apparent.
How to read it
The matrix tells you whether your positions are different "engines" or one bloc moving in step. In crypto most alts are strongly positively correlated with BTC, so simply adding many coins rarely lowers risk as much as it seems. Look for light (blue or pale) cells, as those are what truly diversify the portfolio. A historical measure, not a recommendation.
Parameters
- Coefficient (−1…+1)
- Correlation of two coins' daily returns; pink = positive, blue = negative, paler the closer to 0.
- Positive reading: Many low or negative values: positions diverge, meaning diversification is real.
- Negative reading: Most cells near +1: everything moves together, meaning diversification is only apparent.
- Neutral reading: Values around +0.5: positions are partially linked.
- Diagonal & coverage
- The diagonal is always 1 (a coin with itself); computed from available shared history, coins without data are skipped.