How assets move together — the foundation of institutional risk management
Why correlation matters. If you hold five assets that all move together, you don't have five positions — you have one position five times. Correlation reveals hidden concentration risk. Near +1 = move together (no diversification). Near −1 = move opposite (natural hedge). Near 0 = independent (true diversification). Computed on real daily returns.
Correlations are not static — they shift, and in market stress "everything correlates to 1" (diversification fails exactly when you need it most). Use this as a risk lens, not a guarantee. Past co-movement does not predict future co-movement. Educational analysis, not financial advice. Data: CoinGecko / Yahoo Finance.