Crypto Correlation Calculator
Whether two coins actually move together, measured on 365 days of daily returns. Holding five coins that all do the same thing is one position, not five.
What the number means
Correlation runs from −1 to +1. A reading of +1 means the two coins moved in lockstep every day; 0 means their daily moves were unrelated; −1 means they moved in exact opposition. In crypto almost everything is positively correlated with Bitcoin, so the useful question is not whether the number is positive but how positive.
Above 0.85 the two assets are effectively the same trade. Between 0.6 and 0.85 they share most of their direction but diverge enough to matter. Below 0.6 is genuine diversification by crypto standards, and it usually means one of the two is driven by something specific — a sector narrative, an unlock schedule, a chain-specific event.
Why diversification fails in crypto
Spreading a portfolio across ten altcoins feels like risk management and usually is not. During the falls that actually hurt, correlations rise towards 1: everything sells off together because the same holders are liquidating the same leverage. A portfolio that looks diversified in calm markets can behave as a single leveraged position in a crash.
The practical use of this tool is subtraction, not addition. If two of your holdings correlate above 0.9, you are not diversified between them — you have one position at double the size, and it should be sized that way.
How it is calculated
Pearson correlation of daily percentage returns over the last 365 daily closes from Binance. Returns, not prices: correlating raw prices produces misleadingly high numbers for any two assets that both trended in the same direction, regardless of whether their day-to-day movements were related.
Frequently asked questions
What is a good correlation for diversification?
Below 0.6 is meaningful diversification within crypto. Below 0.3 is rare between two crypto assets and usually indicates the two are driven by genuinely different factors.
Why is almost everything correlated with Bitcoin?
Bitcoin dominates liquidity and sentiment. Capital enters and leaves the whole asset class through it, and most altcoins are traded against it or against stablecoins whose flows follow it.
Does correlation stay stable?
No. It rises sharply during sell-offs and falls during narrative-driven rallies when individual sectors move on their own news. A 365-day figure is an average of both regimes.
Can correlation predict price?
No. It describes the relationship between two series over a past window. It tells you how to size positions relative to each other, not where either is going.
Calculations run in your browser. Prices come from the same daily Binance closes that generate the signals on this site, refreshed every day after the 00:00 UTC close. Nothing here is financial advice.