Correlation Between Bitcoin and Hyperliquid

Can any of the company-specific risk be diversified away by investing in both Bitcoin and Hyperliquid at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bitcoin and Hyperliquid into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bitcoin and Hyperliquid, you can compare the effects of market volatilities on Bitcoin and Hyperliquid and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bitcoin with a short position of Hyperliquid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Hyperliquid.

Diversification Opportunities for Bitcoin and Hyperliquid

0.51

Correlation Coefficient

Bitcoin  Hyperliquid

Very weak diversification

The 3 months correlation between Bitcoin and Hyperliquid is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Hyperliquid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyperliquid and Bitcoin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bitcoin are associated (or correlated) with Hyperliquid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyperliquid has no effect on the direction of Bitcoin i.e., Bitcoin and Hyperliquid go up and down completely randomly.

Pair Corralation between Bitcoin and Hyperliquid

Assuming the 90 days trading horizon Bitcoin is expected to generate 40.64 times less return on investment than Hyperliquid. But when comparing it to its historical volatility, Bitcoin is 69.95 times less risky than Hyperliquid. It trades about 0.21 of its potential returns per unit of risk. Hyperliquid is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,848  in Hyperliquid on April 22, 2025 and sell it today you would earn a total of  2,605  from holding Hyperliquid or generate 140.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Bitcoin  vs.  Hyperliquid

Bitcoin

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Hyperliquid

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hyperliquid are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Hyperliquid exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitcoin and Hyperliquid

The main advantage of trading using opposite Bitcoin and Hyperliquid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Hyperliquid can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hyperliquid will offset losses from the drop in Hyperliquid's long position.

The idea behind Bitcoin and Hyperliquid pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.