How do I use correlation for crypto diversification?

Look for assets with correlation below +0.3 against your existing holdings and verify the relationship across multiple windows. During stress, crypto correlations can compress toward +1, so combine short and long windows.

What is a crowded crypto exposure?

A crowded exposure is a set of holdings that look different by ticker but behave similarly under stress. High correlation between those assets means they do not provide meaningful diversification.

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Portfolio Diversification

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Portfolio Diversification

Crypto Diversification Matrix

Use a crypto diversification matrix to identify crowded exposures, low-correlation assets, and portfolio risk clusters across crypto and TradFi.

Crypto Diversification Matrix

Use a crypto diversification matrix to identify crowded exposures, low-correlation assets, and portfolio risk clusters across crypto and TradFi.