OPEN-SOURCE SCRIPT
Crypto Correlation Dashboard [StrixEDGE]
Overview
A real-time Pearson correlation matrix built for crypto portfolio analysis. Tracks the statistical co-movement between up to 6 assets across selectable timeframes, using log-return correlation — not raw price correlation — to avoid the inflated readings that plague most correlation tools.
Whether you're managing a multi-asset portfolio, hunting pairs trades, or monitoring regime shifts, this dashboard tells you exactly when diversification is real and when it's an illusion.
🔍 What Makes This Different
Most correlation indicators on TradingView calculate Pearson r on raw closing prices. That's a statistical mistake: two assets trending upward will always show near-perfect correlation on price, even if their returns are completely independent. This indicator correlates **logarithmic returns**, which isolates actual co-movement from shared trend bias.
The multi-timeframe engine uses a period-scaling method through `request.security` that preserves mathematical accuracy when projecting higher-timeframe correlations onto lower-timeframe charts — consuming only 6 security calls total, leaving headroom for other indicators on your layout.
⚡ Key Features
6×6 Correlation Matrix
Full heatmap-style matrix covering all 15 unique pair combinations (C(6,2)). Color intensity maps directly to correlation strength: teal for strong positive, red for strong negative, neutral gray for uncorrelated pairs. Diagonal cells are blanked — no wasted space showing you that BTC correlates with BTC.
Multi-Timeframe Support
Select from Chart / 1H / 4H / 1D / 1W directly in settings. The lookback period auto-scales to the target timeframe resolution, so "20 periods on Daily" means 20 trading days regardless of your chart timeframe.
Rolling Correlation Chart
Select any pair (Leg A / Leg B) and track its correlation coefficient over time as a continuous line. Shaded fill between the line and zero gives an instant visual read of direction and magnitude. A dynamic label on the last bar displays the current ρ value.
Aggregate Statistics Bar
Footer row shows AVG / MIN / MAX across all 15 pairs at a glance. When the minimum correlation drops to or below your threshold, a ⚠ BREAKDOWN tag appears.
Three Independent Alert Conditions
- Pair Breakdown — fires when any single pair falls to or below your threshold
- Average Breakdown — fires when the market-wide average correlation collapses
- Rolling Crossunder — fires when your selected pair crosses under the threshold
📐 How to Use
Portfolio Diversification Check
Add your held assets as Symbols 1–6. If the matrix is mostly dark teal (all pairs > 0.7), your portfolio moves as a single block — you're concentrated, not diversified. Look for pairs with low or negative correlation to add genuine hedging value.
Regime Change Detection
Monitor the AVG stat in the footer. A sudden drop in average correlation often precedes volatility expansion, sector rotation, or flight-to-quality moves. The average breakdown alert automates this surveillance.
Pairs Trading
Identify pairs with historically high correlation (> 0.8). When their rolling correlation temporarily collapses, it may signal a mean-reversion opportunity. Use the rolling chart to time entries and the crossunder alert for notifications.
Risk Management
During market stress, correlations tend to spike toward 1.0 across the board ("correlation breakdown to the upside"). When the matrix turns uniformly teal, portfolio risk is higher than position sizing alone suggests.
⚙️ Settings
| Parameter | Default | Description |
|---|---|---|
| Symbols 1–6 | BTC, ETH, SOL, BNB, XRP, ADA | Any tradable asset — crypto, forex, equities, commodities |
| Lookback Period | 20 | Number of target-TF bars for Pearson calculation |
| Timeframe | Chart | Correlation resolution: Chart / 1H / 4H / 1D / 1W |
| Breakdown Alert ≤ | 0.30 | Threshold for all three alert conditions |
| Rolling Pair | 1 × 2 | Which pair (by index) to plot on the rolling chart |
| Matrix Position | Top Right | Table placement on the pane |
| Colors | Brand defaults | Full control over positive, negative, neutral, header, and accent colors |
🧠 Technical Notes
- Log returns `ln(close / close[1])` are used instead of simple returns for better statistical properties (additivity, normality approximation).
- TF scaling: When the selected timeframe exceeds the chart timeframe, the lookback is multiplied by the bar ratio. Pearson r is invariant under uniform observation duplication, so accuracy is preserved.
- Security calls: 6 total (one per symbol), well within Pine's 40-call limit.
- Symbol parsing: Automatically strips exchange prefixes (Binance, Bybit, Coinbase, OKX, etc.) and quote currencies (USDT, USD, BUSD, USDC) for clean matrix labels.
- Works on any asset class — not limited to crypto despite the default symbols.
⚠️ Limitations
- Selecting a timeframe **lower** than your chart TF (e.g., "1H" on a Daily chart) will not produce hourly-resolution correlation. The multiplier floors at 1 and you get chart-TF correlation. For true 1H correlation, view on a 1H chart.
- Pearson correlation measures **linear** relationships. Non-linear dependencies (tail risk, asymmetric co-movement during crashes) require different tools.
- Past correlation does not guarantee future correlation. Regime shifts can invalidate historical readings without warning — which is exactly why the breakdown alerts exist.
A real-time Pearson correlation matrix built for crypto portfolio analysis. Tracks the statistical co-movement between up to 6 assets across selectable timeframes, using log-return correlation — not raw price correlation — to avoid the inflated readings that plague most correlation tools.
Whether you're managing a multi-asset portfolio, hunting pairs trades, or monitoring regime shifts, this dashboard tells you exactly when diversification is real and when it's an illusion.
🔍 What Makes This Different
Most correlation indicators on TradingView calculate Pearson r on raw closing prices. That's a statistical mistake: two assets trending upward will always show near-perfect correlation on price, even if their returns are completely independent. This indicator correlates **logarithmic returns**, which isolates actual co-movement from shared trend bias.
The multi-timeframe engine uses a period-scaling method through `request.security` that preserves mathematical accuracy when projecting higher-timeframe correlations onto lower-timeframe charts — consuming only 6 security calls total, leaving headroom for other indicators on your layout.
⚡ Key Features
6×6 Correlation Matrix
Full heatmap-style matrix covering all 15 unique pair combinations (C(6,2)). Color intensity maps directly to correlation strength: teal for strong positive, red for strong negative, neutral gray for uncorrelated pairs. Diagonal cells are blanked — no wasted space showing you that BTC correlates with BTC.
Multi-Timeframe Support
Select from Chart / 1H / 4H / 1D / 1W directly in settings. The lookback period auto-scales to the target timeframe resolution, so "20 periods on Daily" means 20 trading days regardless of your chart timeframe.
Rolling Correlation Chart
Select any pair (Leg A / Leg B) and track its correlation coefficient over time as a continuous line. Shaded fill between the line and zero gives an instant visual read of direction and magnitude. A dynamic label on the last bar displays the current ρ value.
Aggregate Statistics Bar
Footer row shows AVG / MIN / MAX across all 15 pairs at a glance. When the minimum correlation drops to or below your threshold, a ⚠ BREAKDOWN tag appears.
Three Independent Alert Conditions
- Pair Breakdown — fires when any single pair falls to or below your threshold
- Average Breakdown — fires when the market-wide average correlation collapses
- Rolling Crossunder — fires when your selected pair crosses under the threshold
📐 How to Use
Portfolio Diversification Check
Add your held assets as Symbols 1–6. If the matrix is mostly dark teal (all pairs > 0.7), your portfolio moves as a single block — you're concentrated, not diversified. Look for pairs with low or negative correlation to add genuine hedging value.
Regime Change Detection
Monitor the AVG stat in the footer. A sudden drop in average correlation often precedes volatility expansion, sector rotation, or flight-to-quality moves. The average breakdown alert automates this surveillance.
Pairs Trading
Identify pairs with historically high correlation (> 0.8). When their rolling correlation temporarily collapses, it may signal a mean-reversion opportunity. Use the rolling chart to time entries and the crossunder alert for notifications.
Risk Management
During market stress, correlations tend to spike toward 1.0 across the board ("correlation breakdown to the upside"). When the matrix turns uniformly teal, portfolio risk is higher than position sizing alone suggests.
⚙️ Settings
| Parameter | Default | Description |
|---|---|---|
| Symbols 1–6 | BTC, ETH, SOL, BNB, XRP, ADA | Any tradable asset — crypto, forex, equities, commodities |
| Lookback Period | 20 | Number of target-TF bars for Pearson calculation |
| Timeframe | Chart | Correlation resolution: Chart / 1H / 4H / 1D / 1W |
| Breakdown Alert ≤ | 0.30 | Threshold for all three alert conditions |
| Rolling Pair | 1 × 2 | Which pair (by index) to plot on the rolling chart |
| Matrix Position | Top Right | Table placement on the pane |
| Colors | Brand defaults | Full control over positive, negative, neutral, header, and accent colors |
🧠 Technical Notes
- Log returns `ln(close / close[1])` are used instead of simple returns for better statistical properties (additivity, normality approximation).
- TF scaling: When the selected timeframe exceeds the chart timeframe, the lookback is multiplied by the bar ratio. Pearson r is invariant under uniform observation duplication, so accuracy is preserved.
- Security calls: 6 total (one per symbol), well within Pine's 40-call limit.
- Symbol parsing: Automatically strips exchange prefixes (Binance, Bybit, Coinbase, OKX, etc.) and quote currencies (USDT, USD, BUSD, USDC) for clean matrix labels.
- Works on any asset class — not limited to crypto despite the default symbols.
⚠️ Limitations
- Selecting a timeframe **lower** than your chart TF (e.g., "1H" on a Daily chart) will not produce hourly-resolution correlation. The multiplier floors at 1 and you get chart-TF correlation. For true 1H correlation, view on a 1H chart.
- Pearson correlation measures **linear** relationships. Non-linear dependencies (tail risk, asymmetric co-movement during crashes) require different tools.
- Past correlation does not guarantee future correlation. Regime shifts can invalidate historical readings without warning — which is exactly why the breakdown alerts exist.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
✅MY Free Signals Telegram
t.me/StrixEdge
✅Website
strix-edge.com
t.me/StrixEdge
✅Website
strix-edge.com
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
✅MY Free Signals Telegram
t.me/StrixEdge
✅Website
strix-edge.com
t.me/StrixEdge
✅Website
strix-edge.com
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.