Crypto Correlation Matrix
Analyze asset correlations to optimize portfolio diversification
Avg Portfolio Correlation
0.66
Most Correlated Pair
BTC/ETH
0.85
Least Correlated Pair
DOT/LINK
0.52
Diversification Score
34
Moderate
Correlation Heatmap
| Asset | BTC | ETH | SOL | BNB | XRP | ADA | AVAX | DOT | LINK | MATIC |
|---|---|---|---|---|---|---|---|---|---|---|
| BTC | 1.00 | 0.85 | 0.72 | 0.78 | 0.65 | 0.68 | 0.75 | 0.62 | 0.71 | 0.79 |
| ETH | 0.85 | 1.00 | 0.68 | 0.74 | 0.62 | 0.64 | 0.71 | 0.59 | 0.68 | 0.76 |
| SOL | 0.72 | 0.68 | 1.00 | 0.66 | 0.58 | 0.61 | 0.69 | 0.55 | 0.63 | 0.67 |
| BNB | 0.78 | 0.74 | 0.66 | 1.00 | 0.61 | 0.63 | 0.72 | 0.58 | 0.66 | 0.74 |
| XRP | 0.65 | 0.62 | 0.58 | 0.61 | 1.00 | 0.72 | 0.59 | 0.68 | 0.54 | 0.63 |
| ADA | 0.68 | 0.64 | 0.61 | 0.63 | 0.72 | 1.00 | 0.62 | 0.71 | 0.57 | 0.66 |
| AVAX | 0.75 | 0.71 | 0.69 | 0.72 | 0.59 | 0.62 | 1.00 | 0.61 | 0.65 | 0.73 |
| DOT | 0.62 | 0.59 | 0.55 | 0.58 | 0.68 | 0.71 | 0.61 | 1.00 | 0.52 | 0.60 |
| LINK | 0.71 | 0.68 | 0.63 | 0.66 | 0.54 | 0.57 | 0.65 | 0.52 | 1.00 | 0.69 |
| MATIC | 0.79 | 0.76 | 0.67 | 0.74 | 0.63 | 0.66 | 0.73 | 0.60 | 0.69 | 1.00 |
Understanding Correlation & Portfolio Diversification
What is Correlation?
Correlation measures how two assets move together. Values range from -1 (perfect inverse relationship) to +1 (perfect positive relationship). A correlation near 0 means assets move independently.
Why Low Correlation Matters
Assets with low correlation provide better portfolio diversification. When one asset declines, others may hold their value or increase, reducing overall portfolio volatility. Mix highly correlated assets (like BTC/ETH) with lower correlation pairs for optimal risk management.
Your Diversification Score
A score of 34 indicates moderate potential for diversification. Aim to combine assets with correlation values below 0.70 for a well-balanced portfolio.
Suggested Diversified Portfolios
Conservative Mix
Low correlation focus
- • BTC 30%
- • XRP 25%
- • DOT 20%
- • LINK 15%
- • ADA 10%
Avg Correlation: 0.61
Balanced Growth
Mixed correlation strategy
- • BTC 25%
- • ETH 20%
- • SOL 20%
- • AVAX 15%
- • LINK 10%
- • XRP 10%
Avg Correlation: 0.70
Aggressive Diversification
Maximum variety approach
- • BTC 20%
- • SOL 20%
- • LINK 20%
- • DOT 15%
- • XRP 15%
- • MATIC 10%
Avg Correlation: 0.64