#TradingPairs101 The relationship between two cryptocurrency assets in trading is reflected in the correlation and cointegration between them, which indicate how their prices tend to move together. Cryptocurrency pairs, such as BTC/USDT or ETH/BTC, are key tools for this analysis, representing the exchange of one asset for another. Correlation measures the relationship between the price movement of two assets.
It can be positive (moving in the same direction), negative (moving in opposite directions), or zero (not correlated).
A high correlation (0.80 or more) usually indicates a stronger relationship, which can be useful for pair trading.