Correlation of Cryptocurrencies
已更新
“Correlation statistically measures the strength of a linear relationship between two relative movements of two variables and ranges from 0 to 1.”
In general, assets with a correlation above 0.5 or below are considered to have strong positive/negative correlations. Conversely, a close-to-zero correlation indicates no linear relationship between two variables, and for the purpose of this analysis, the returns of two assets.If the returns of two assets do exhibit a positive correlation, it implies that the two assets are, to some extent, moving in the same direction, and therefore share similar risks. On the other hand, a negative correlation between the returns of two assets indicates that the two assets are moving in opposite directions, and it is thus possible to use one asset as a hedge against the other.
Based on this analysis, correlations are highest between altcoins and Bitcoin itself (~ average correlation of 0.69), indicating that most of the altcoins move in similar directions as Bitcoin, underscoring Bitcoin’s status as a bellwether for cryptoasset markets.While, generally speaking, altcoins are highly correlated with BTC, select cryptoassets exhibit materially weaker correlations both with BTC and among one another, which suggests that additional idiosyncratic factors may affect the prices and returns of these assets.
In general, assets with a correlation above 0.5 or below are considered to have strong positive/negative correlations. Conversely, a close-to-zero correlation indicates no linear relationship between two variables, and for the purpose of this analysis, the returns of two assets.If the returns of two assets do exhibit a positive correlation, it implies that the two assets are, to some extent, moving in the same direction, and therefore share similar risks. On the other hand, a negative correlation between the returns of two assets indicates that the two assets are moving in opposite directions, and it is thus possible to use one asset as a hedge against the other.
Based on this analysis, correlations are highest between altcoins and Bitcoin itself (~ average correlation of 0.69), indicating that most of the altcoins move in similar directions as Bitcoin, underscoring Bitcoin’s status as a bellwether for cryptoasset markets.While, generally speaking, altcoins are highly correlated with BTC, select cryptoassets exhibit materially weaker correlations both with BTC and among one another, which suggests that additional idiosyncratic factors may affect the prices and returns of these assets.
注释
Dear followers and users of TradingView. We are glad to share our ideas and analysis with you, guys. Now we are planning to add educational materials in our channel. We have a short request for you. Please support our channel with your LIKES and COMMENTS below this idea.
Sincerely, Berzerk Invest🔥
FREE Ideas and Signals
✅📈 t.me/berzerk_invest
✅📈 t.me/berzerk_invest
相关出版物
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。