Asset correlation
Are you actually diversified?
Pearson correlation matrix on log returns across the top 12 Hyperliquid perps by volume. Green means assets move together, red means they diverge. When everything is dark green you do not have diversification — you have one bet.
Avg off-diagonal
0.122
Genuine diversification available
Tightest pair
BTC ↔ ENA
ρ = 0.621
Loosest pair
XRP ↔ VVV
ρ = -0.209
Correlation matrix
| ρ | BTC | ETH | HYPE | ZEC | SOL | NEAR | LIT | XRP | TON | WLD | ENA | VVV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BTC | 1.00 | -0.02 | 0.00 | 0.00 | 0.00 | 0.54 | 0.41 | -0.18 | 0.45 | 0.35 | 0.62 | 0.51 |
| ETH | -0.02 | 1.00 | 0.00 | 0.00 | 0.00 | 0.04 | -0.02 | -0.05 | 0.08 | 0.03 | 0.00 | -0.16 |
| HYPE | 0.00 | 0.00 | 1.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| ZEC | 0.00 | 0.00 | 0.00 | 1.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| SOL | 0.00 | 0.00 | 0.00 | 0.00 | 1.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| NEAR | 0.54 | 0.04 | 0.00 | 0.00 | 0.00 | 1.00 | 0.45 | -0.19 | 0.47 | 0.36 | 0.55 | 0.49 |
| LIT | 0.41 | -0.02 | 0.00 | 0.00 | 0.00 | 0.45 | 1.00 | -0.14 | 0.36 | 0.25 | 0.53 | 0.47 |
| XRP | -0.18 | -0.05 | 0.00 | 0.00 | 0.00 | -0.19 | -0.14 | 1.00 | -0.07 | -0.15 | -0.13 | -0.21 |
| TON | 0.45 | 0.08 | 0.00 | 0.00 | 0.00 | 0.47 | 0.36 | -0.07 | 1.00 | 0.37 | 0.38 | 0.36 |
| WLD | 0.35 | 0.03 | 0.00 | 0.00 | 0.00 | 0.36 | 0.25 | -0.15 | 0.37 | 1.00 | 0.40 | 0.35 |
| ENA | 0.62 | 0.00 | 0.00 | 0.00 | 0.00 | 0.55 | 0.53 | -0.13 | 0.38 | 0.40 | 1.00 | 0.51 |
| VVV | 0.51 | -0.16 | 0.00 | 0.00 | 0.00 | 0.49 | 0.47 | -0.21 | 0.36 | 0.35 | 0.51 | 1.00 |
Tightest 5 (move together)
- BTC ↔ ENAρ 0.621
- NEAR ↔ ENAρ 0.550
- BTC ↔ NEARρ 0.537
- LIT ↔ ENAρ 0.534
- BTC ↔ VVVρ 0.512
Loosest 5 (diverge most)
- XRP ↔ VVVρ -0.209
- NEAR ↔ XRPρ -0.188
- BTC ↔ XRPρ -0.183
- ETH ↔ VVVρ -0.162
- XRP ↔ WLDρ -0.146
How to use it
Correlation between -1 and +1. +1 = perfect co-movement, 0 = uncorrelated, -1 = perfect anti-correlation. In crypto bull regimes most pairs sit at +0.7 to +0.9 — that means a multi-asset book is one bet on BTC. Use the loosest pairs to find genuine diversification, and watch the avg correlation drop as the market loses risk-on cohesion.