Risk & Correlation • Cross-Asset

Cross-Asset Correlations

Discover relationships between crypto, stocks, commodities, and forex.

Cross-Asset Correlations: Understand How Markets Move Together

Discover correlation patterns between crypto, stocks, commodities, and forex markets. Correlation measures how assets move together, ranging from -1 (perfect inverse) to +1 (perfect together). Use this data to diversify your portfolio, hedge positions, and identify leading indicators. Strong positive correlation (>0.7) means assets move together. Strong negative correlation (<-0.7) means they move opposite. Track these relationships to anticipate crypto moves based on traditional markets.

Correlation Metrics Overview

View average correlation across all pairs, strongest positive relationships, and strongest inverse relationships. Use these metrics to identify market regimes and diversification opportunities.

📊 Understanding Asset Correlations

Correlation measures how assets move together. Range: -1 (perfect inverse) to +1 (perfect together).

• +1.0: Assets move perfectly together
• 0.0: No relationship
• -1.0: Assets move in opposite directions

Average Correlation

0.000

Across all asset pairs

Max Positive

+0.000

Strongest positive correlation

Max Negative

0.000

Strongest negative correlation

📈 Correlation Distribution

📈 Top 10 Positive Correlations

Assets that move together

📉 Top 10 Negative Correlations

Assets that move in opposite directions

📋 All Cross-Asset Correlations

Asset 1	Asset 2	Classes	Correlation	Interpretation

💡 Trading with Correlations

• Diversification: Choose assets with low/negative correlations to reduce portfolio risk.

• Leading Indicators: If BTC and S&P 500 are correlated (+0.7), watch stock futures for crypto direction.

• Hedging: Use negatively correlated assets (e.g., BTC vs DXY) to hedge positions.

• Risk-On/Risk-Off: Positive correlation between crypto and tech stocks = both driven by risk appetite.

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Risk Warning

CRITICAL: Correlations are NOT static—they change during market stress. During the 2020 COVID crash, Bitcoin initially crashed WITH stocks (positive correlation), then decoupled and rallied. During 2022 bear market, BTC moved EXACTLY with Nasdaq (0.9 correlation). Never assume correlations are permanent. Recalculate monthly. Past correlation does NOT guarantee future behavior. Use correlations as one tool among many, never as your only decision factor.