Is Cryptocurrency Asset Diversification Possible? Analyzing Degree Of Correlation
Return Correlation on Cryptocurrency Pairs
This chart figure shows the minute-to-minute return correlation of each pair of cryptocurrencies during the day. The number in each circle is the correlation coefficient of the two cryptocurrencies on the x and y axis. A perfect positive correlation (a correlation coefficient of +1) implies that the return of two currency pairs will move in the same direction 100% of the time.
A perfect negative correlation (a correlation coefficient of -1) means that the the return of two currency pairs will move in the opposite direction 100% of the time.