Tracking correlations across financial market assets

QuestDB is an open-source database optimized for market data analysis, offering high ingestion throughput, advanced SQL analytics, and efficient hardware use, making it ideal for handling tick data. The article explores the significance of correlation in financial trading, particularly in the context of cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). It examines whether these two assets are correlated and how this relationship has evolved over time, utilizing tools like Grafana for visualization. The analysis highlights the importance of correlation for diversification, hedging, and identifying market opportunities, using a scatter plot to demonstrate the correlation between BTC-USD and ETH-USD. The findings indicate that the correlation between these cryptocurrencies has decreased in 2023, possibly due to market factors like the anticipated approval of Bitcoin ETFs in the US. By leveraging QuestDB's capabilities, the article underscores the value of understanding asset correlations in dynamic market environments, encouraging further exploration by the community.