Correlation
Correlation describes the degree to which two assets, markets or variables tend to move in relation to one another over a measured period. Positive correlation means they tend to move in the same direction, while negative correlation means they tend to move in opposite directions. Correlation can change over time.
Why it matters to you
Several positions can create similar risk even when they involve different assets. If BTC, ETH and SOL are strongly moving together, holding leveraged longs in all three may create substantial common market exposure.
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