Binance Research: Ether was the most correlated crypto asset of 2019

The research arm of Binance, one of the
world’s largest cryptocurrency exchanges, recently published a report stating that Ethereum’s Ether is the
most correlated asset of 2019. Binance Research claims that ETH had an average
correlation coefficient of around 0.69, out of the 20 leading cryptos.

During its study, Binance Research has learned
that assets whose correlation exceeds 0.5 can be considered to have a very
strong positive association. Meanwhile, those with -0.5 have a strong negative
association.

The assets whose correlation coefficient ends
up between these two levels — around zero — indicate a “lack of linear
relationship between two variables.” Meanwhile, having a positive
correlation means that two assets are likely to move in the same direction. In
other words, if one of the assets starts to grow, the chances are that the
other one will, as well.

This could be a very useful indicator for traders and investors who might use it to ensure higher profits or…