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What is Correlation?

Correlation, a measure of how two coins move together: +1 in sync, 0 independent, −1 in opposite directions. High correlation means weak diversification.

Example

BTC and ETH with a correlation of 0.9 almost always move together.

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More terms

DCADisagreementDrawdownDVOLFear & Greed IndexFunding Divergence
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Educational material by MarketNerve — not financial advice.