Complete Correlation Matrix for Poloniex
Have you ever wondered how correlated a coin is with another coin? The correlation matrix below shows the correlation between every coin on Poloniex based on data for 2017 to date.
Not surprisingly, the likes of Steem Dollars which is intended to be linked to dollars has very low correlation with everything else.
There’s a lot of information here.
For those who are unfamiliar with this, the correlation ranges from -100% to +100%. A correlation of 100% means perfectly positively correlated i.e. the price movement is completely in sync. A correlation of 30% would mean mildly positively correlated meaning the two coins would move in the same direction on average but the degree of correlation is not strong.
Apart from the Steem Dollars observation, are there any other observations that stand out?
The first table shows the top 30 by market cap and the bottom table shows everything.
@bitgeek Great info! Thank you for sharing. I was searching for this. Do you know of a website that shows these correlations in real-time?
Useful information, @bitgeek! Thank you for sharing : )
Upvoted & Followed.
Another useful post! Thanks!
Upvote!
Keep em coming! Already followed, thanks for all that you do here.
That's insane.
Great info bitgeek! I couldn't zoom in to the large chart to see much, but of the top 30, the coin with the least correlation to BTC, Dash, is still highly correlated at just under 80%. BTC is shrinking in overall market cap, but it is clearly still driving the bus for everything else. Any chance you could look at correlations between cryptocurrencies and other asset classes? Like S&P 500, gold, US Treasurys?
I can look at the correlation with the s&p easily enough. I could look at the daily price movement correlation since the start of the year.
Investors who have US stock market exposure should be very interested in that. Any solid investment that is uncorrelated with the S&P is quite meaningful. Looking forward to your future posts. Thanks again.
I'll enjoy going through this. It's been 24/7 the past week on Poloniex for me. Thank you for posting this information.
I can't read the values in the images as they are too small. Do you have a link to originals?