Asset Correlation Tool v2

Correlation amongst assets is the degree to which they move in tandem. This indicator measures correlation between different assets. Why is that important?

To any investor diversification is a very important technique for reducing risk. The problem is that most misunderstand it. Most people tend to think diversification is achieved simply by investing in a variety of assets instead of just a few.

This is wrong.

The whole point of diversification is to be invested in assets with different growth drivers. A portfolio consisting of +20 highly correlated assets (Your cryptobags, probably) is the OPPOSITE of diversification. This is taking on risk without being compensated for it. Which is contradictory to the fundamental reason for why you do invest in assets.

Proper diversification is achieved when you reduce the correlation between the assets in your portfolio.

To use this tool, add it to your favorites and then add it to your chart. It will by default only show the correlation between an altcoin index and the current chart symbol.

If you go to its settings you can add its correlation to the stock market, gold and you can also easily customize it to any security you want.

0.5 to 1.0: Strong positive correlation
Around 0: Little to no correlation
-0.5 to -1.0: Strong negative correlation

Took a few hours to build this one. It would be super helpful if you can take a look at the index I used - I'm convinced there are better and more accurate methods to this one. But best I could come up with

Later I will evolve this one to an oscillator that measures the relation between cross coin correlations and volatility . Inspired by some great work by @cryptorae

If you have any requests or ideas please shoot

Updates v0.2
- Added altcoin index
- Changed some calculations
- Restructed code
Oct 28
版本注释: Improved some code
从常用的脚本中删除 添加到常用的脚本
首页 股票筛选器 外汇筛选器 加密货币筛选器 财经日历 剧集 如何运作 图表功能 价格 推荐朋友 网站规则 帮助中心 网站 & 经纪商解决方案 插件 图表解决方案 轻量图表库 博客 & 新闻 Twitter
概述 个人资料设置 账号和账单 推荐朋友 我的客服工单 帮助中心 已发表观点 粉丝 正在关注 私人消息 聊天 退出