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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.

7d30d90d90 days · 1d
Avg off-diagonal
0.310
Genuine diversification available
Tightest pair
BTCETH
ρ = 0.919
Loosest pair
ENAVVV
ρ = 0.000
Correlation matrix
ρBTCETHHYPEZECSOLNEARLITXRPTONWLDENAVVV
BTC1.000.920.470.000.880.320.270.870.330.380.570.00
ETH0.921.000.470.000.850.420.300.860.300.460.600.00
HYPE0.470.471.000.000.450.270.420.460.220.240.370.00
ZEC0.000.000.001.000.000.000.000.000.000.000.000.00
SOL0.880.850.450.001.000.440.290.890.390.520.650.00
NEAR0.320.420.270.000.441.000.290.350.340.510.450.00
LIT0.270.300.420.000.290.291.000.270.230.180.440.00
XRP0.870.860.460.000.890.350.271.000.290.450.640.00
TON0.330.300.220.000.390.340.230.291.000.420.390.00
WLD0.380.460.240.000.520.510.180.450.421.000.390.00
ENA0.570.600.370.000.650.450.440.640.390.391.000.00
VVV0.000.000.000.000.000.000.000.000.000.000.001.00
Tightest 5 (move together)
  1. BTCETHρ 0.919
  2. SOLXRPρ 0.889
  3. BTCSOLρ 0.877
  4. BTCXRPρ 0.869
  5. ETHXRPρ 0.862
Loosest 5 (diverge most)
  1. ENAVVVρ 0.000
  2. WLDVVVρ 0.000
  3. TONVVVρ 0.000
  4. XRPVVVρ 0.000
  5. LITVVVρ 0.000
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.