Understanding BTC Correlation
BTC Correlation measures how closely an altcoin's price moves with Bitcoin — important for portfolio diversification.
What is BTC Correlation?
BTC Correlation measures the statistical relationship between an altcoin's price movement and Bitcoin's. A correlation of 1.0 means they move identically; 0.0 means completely independent; -1.0 means opposite.
Why It Matters
If every coin in your portfolio is highly correlated with Bitcoin, you have no real diversification. Coins with lower BTC correlation provide genuine portfolio diversification and may outperform during altcoin seasons.
How We Use It
BTC Correlation is weighted at 8% in our Value Score. We use 7-day price change divergence as a proxy — coins showing independent price action score higher for diversification value.
Current Top 5 Coins by BTC Correlation
How our algorithm currently scores the leading crypto assets on the "BTC Correlation" component. Higher = stronger undervaluation signal on this single dimension.
Worked Example
Shiba Inu (SHIB) leads with a BTC Correlation value of 55/100. On this single dimension, Shiba Inu currently shows a neutral signal. Click Shiba Inu above to see the full score breakdown across all 10 metrics.