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
BTC1.000.890.390.81
ETH0.891.000.420.82
HYPE0.390.421.000.49
SOL0.810.820.491.00

Pair Correlations

PairCorrelationRelationship
BTC/ETH0.891Strong
BTC/SOL0.806Strong
BTC/HYPE0.385Weak
ETH/SOL0.825Strong
ETH/HYPE0.416Weak
HYPE/SOL0.491Weak

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