Traditional Investing & Portfolio Theory

What is correlation between asset classes?

Correlation between asset classes measures how their returns move in relation to one another, on a scale from minus one to plus one. A value near plus one means they tend to move together, near minus one means they move oppositely, and near zero means little relationship. For example, combining assets with low correlation can smooth a portfolio's overall path because they rarely fall at the same time. This is the basis of diversification. Qatobit's research-led QSI crypto indices document their construction so investors can assess how crypto correlates with their existing holdings.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.