Understanding Cryptocoins Trends Correlations
- URL: http://arxiv.org/abs/2212.01267v1
- Date: Wed, 30 Nov 2022 15:50:36 GMT
- Title: Understanding Cryptocoins Trends Correlations
- Authors: Pasquale De Rosa and Valerio Schiavoni
- Abstract summary: We shed light on the trend correlations across a large variety of cryptocoins, by investigating their coin-price correlation trends over a period of two years.
Our results suggest strong correlation patterns between main coins (Ethereum, Bitcoin) and alt-coins.
We believe our study can support forecasting techniques for time-series modeling in the context of crypto-coins.
- Score: 0.76146285961466
- License: http://creativecommons.org/licenses/by/4.0/
- Abstract: Crypto-coins (also known as cryptocurrencies) are tradable digital assets.
Notable examples include Bitcoin, Ether and Litecoin. Ownerships of cryptocoins
are registered on distributed ledgers (i.e., blockchains). Secure encryption
techniques guarantee the security of the transactions (transfers of coins
across owners), registered into the ledger. Cryptocoins are exchanged for
specific trading prices. While history has shown the extreme volatility of such
trading prices across all different sets of crypto-assets, it remains unclear
what and if there are tight relations between the trading prices of different
cryptocoins. Major coin exchanges (i.e., Coinbase) provide trend correlation
indicators to coin owners, suggesting possible acquisitions or sells. However,
these correlations remain largely unvalidated. In this paper, we shed lights on
the trend correlations across a large variety of cryptocoins, by investigating
their coin-price correlation trends over a period of two years. Our
experimental results suggest strong correlation patterns between main coins
(Ethereum, Bitcoin) and alt-coins. We believe our study can support forecasting
techniques for time-series modeling in the context of crypto-coins. We release
our dataset and code to reproduce our analysis to the research community.
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