The correlation matrix provides a quick glimpse into the statistical relationship between the prices of crypto and traditional assets at the current moment. The matrix displays the values for the 30-day correlation coefficient (known as r in statistics).
A correlation coefficient close to 1 implies a strong positive correlation between the two prices, a correlation near 0 suggests no correlation and a correlation close to -1 points to a strong negative correlation (meaning that the price of Bitcoin and the asset in question tend to move in opposite directions).
The correlation coefficient is useful to grasp the relationship between an asset's price and another. If the correlation is close to a value of 1, as is the case with Ethereum and Nasdaq100, it means that there is a high statistically significant relationship between the prices of the two.
Correlations close to -1, as is the case between Bitcoin and the US Dollar Index, point to a strong negative relationship between the two. In other words, Bitcoin has been moving inversely to the value of the US Dollar over the last 30 days. To monitor how these relationships progress through time, it is worth looking at the historical correlation indicator.