Correlation between Hive and major cryptocurrencies?

Hive blockchain launched on March 20th 2020 and is now 3 years old.

Happy Birthday Hive!

It managed to improve the underlying technology, retain a solid userbase during the bear market by offering a decentralized social media solution, an algorithmic stablecoin and a multitude of games and apps.

The governance is based on on a delegated proof of stake (DPoS) model.

Hive (HIVE) compared against the largest blockchains by market cap: Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB) and Ripple (XRP).

There are multiple reasons to look into correlations between different coins:

The growth (and decline) of crypto market caps has led to many asset allocations getting bent out of shape. Understanding correlations can help to inform with diversification of tokens.
Cryptos can exhibit a sickening degree of volatility. Knowing correlations can somewhat protect the portfolio from whipsawing too much.
Because the crypto market is ever changing, analyzing correlations can inform which coins to add or divest.
Eventually it can also help to adjust the allocation between cryptocurrencies and other assets.

Price Performance 01.04.20 – 17.03.23
BNB: 2531%
ETH: 1161%
BTC: 292%
HIVE: 132%
XRP: 105%

What is correlation?

Correlation describes the relationship between two variables, where a change in one is associated with a change in the other. It measures the strength and direction of that relationship.
For this dataset, daily percentages moves in crypto currencies was used as basis. The method employed is the Pearson correlation coefficient, which ranges from -1 to 1.

-1 signifies a perfectly adversarial relation.
0 means that the variables are completely unrelated and the relation offers no insights.
1 is a perfect correlation.
Values greater than 0.75 is considered a “strong” correlation as a rule of thumb. It depends on the field it is applied to.

Cryptocurrency most correlated with HIVE:

HIVE to ETH: 0.78
HIVE to BNB: 0.75
HIVE to BTC: 0.60
HIVE to XRP: 0.54
One of the more common opinions in crypto is that BTC basically dominates most things from a price perspective. At least for Hive that isn’t the most important correlation. It is much more aligned with the two large multi-purpose chains Ethereum and BNB Chain.

Correlation between major currencies:
ETH to BNB: 0.93
ETH to BTC: 0.88
ETH to XRP: 0.85
BNB to XRP: 0.83
BNB to BTC: 0.79
It might not be a surprise that the two EVM compatible chains show a very high degree of correlation.
Bitcoin supremacy holds for ETH and BNB. Both are strongly correlated with BTC. Their correlation with BTC is higher than HIVE with them.

Daily market data from coingecko
Period observed: 01.04.2020 until 17.03.2023 – 1081 days of data for each dataset.
Cryptocurrencies considered: BTC, ETH, BNB, XRP, HIVE
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Correlation between Hive and major cryptocurrencies? | Ecency