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Hello, friends!😊 I trade in the Vooi @vooi-app terminal https://app.vooi.io and today I want to touch on an important topic of coin correlation with Bitcoin. Correlation shows how closely the price movements of other coins are related to the price movements of BTC.
Correlation is a statistical measure of the degree of relationship between two assets. It ranges from -1 to +1: +1 is a perfect positive correlation (moving together), 0 is no correlation (moving independently), -1 is a perfect negative correlation (moving in opposite).
We need to understand why correlation is important to us. First, understanding correlation helps diversify your portfolio and analyze risks. If you bought assets with a high correlation, the risks increase when the market falls.

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It is also important to consider correlation when entering trades in Vooi terminal. If a coin is highly correlated with BTC, then its movement will most likely follow BTC. This is important when you expect BTC to move - a rise or fall can pull the coin in the same direction.
It's especially important to consider correlation during high volatility, as BTC movement often breaks local coin signals. It's important to remember that correlation may be due to unique supply/demand factors, marketing, news, or speculation. Let's trade together, good luck!