Correlation to Bitcoin

This is the Pearson correlation of the asset's daily logarithmic returns with bitcoin's over the trailing ninety days. Unlike beta it is scale-free: it measures how tightly the two move together, not how far. Values near one indicate the two series moved almost in lockstep over the window.

How it is computed

Pearson correlation of daily log returns with bitcoin over the trailing 90 days

Where it misleads

Pearson correlation captures linear association only and is dominated by the handful of largest days inside the sample, so it can be set almost entirely by two or three sessions. Correlations across digital assets are unstable and rise sharply during liquidation cascades, which means a low reading in a quiet period is not a durable diversification property. Assets that trade on fewer venues or print prices infrequently show spuriously low correlation because their returns are effectively measured at different moments than bitcoin's. Wrapped tokens, staked derivative tokens, and exchange-issued representations of bitcoin will show near-perfect correlation by construction, which is a definitional artifact rather than a market fact.

The equity comparison, and why it fails

Correlation to a benchmark index; a benchmark index is a diversified portfolio by construction, whereas bitcoin is a single asset, so this figure measures co-movement with one instrument rather than with a market.

Reading a high or a low value

A value near one means the asset's daily moves closely tracked bitcoin's over the window; a value near zero means little linear relationship; a negative value means they typically moved in opposite directions. The estimate describes one ninety-day window and changes as regimes change.