Correlation vs Benchmark

What it means: A score from -1 to +1 showing how closely your portfolio follows a major index (like BTC or S&P 500).

In plain terms: Is your portfolio just "copying" the market?

Example: A correlation of 0.95 with BTC means if BTC goes up, you go up. If BTC crashes, you crash.

• Bonds: Often negatively correlated with stocks, acting as a "safe haven."
• Equities: Highly correlated with broad market indexes like the S&P 500.
• Crypto: Most altcoins are hyper-correlated with Bitcoin, moving in lockstep.

How to use it: If your correlation is 1.0, you aren't diversified. To lower risk, look for assets with lower correlation (like Gold or stablecoin yields).