A correlation matrix shows how assets move in relation to each other. In portfolio analysis, it helps users understand whether diversification is real or only apparent.
This matters in crypto because many assets can look different while behaving similarly during market stress.
Short Answer
Correlation analysis helps users see:
- Which assets move together
- Whether diversification is meaningful
- Where risk factors overlap
- How correlations affect optimization
- Whether portfolio construction needs review
Correlation is historical context, not a prediction.
Where Raster Fits
Raster uses correlation analysis as part of risk, diversification, and portfolio optimisation workflows.
Explore Risk Analysis and Portfolio Optimisation.
FAQ
Does low correlation guarantee lower risk?
No. Correlations can change, especially during market stress.