How to Use ME10014: Correlation in Trading

Correlation data reveals when BTC provides diversification vs moves with equities.

Strategy: Correlation Regime Trading

def correlation_regime():
    """Identify correlation regime for strategy selection."""
    btc_spy = requests.get(f"{MADJIK_API}/metrics/ME10014/btc_spy/30d", headers=HEADERS).json()
    
    corr = btc_spy["value"]
    
    if corr > 0.7:
        return {
            "regime": "RISK_ON_CORRELATED",
            "implication": "BTC follows equity sentiment",
            "strategy": "Trade with macro view"
        }
    elif corr < 0.3:
        return {
            "regime": "INDEPENDENT",
            "implication": "BTC provides diversification",
            "strategy": "Can hold regardless of equity view"
        }
    return {"regime": "MODERATE", "correlation": corr}

print(correlation_regime())

Risk Matrix

For informational purposes only. Not financial, investment, tax, legal or other advice.