@websterlamb
To diversify crypto risk using correlation analysis, select assets with low or negative correlations (e.g., BTC vs. XRP or ETH vs. ADA). Use a 30-90 day correlation coefficient (below 0.5 is ideal). Allocate 50-70% to BTC/ETH for stability, then spread 30-50% across uncorrelated altcoins. Rebalance monthly to adapt to shifting correlations.
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