Our new correlation matrix tool flags when your open positions are more correlated than they might appear at a glance — a common blind spot where a trader believes they're diversified across several instruments that, in practice, tend to move together.
What the Tool Shows
The matrix displays a rolling correlation coefficient between every pair of instruments currently open in your account, color-coded from strongly negative to strongly positive correlation, calculated over a configurable recent time window.
Why This Matters
Two positions that look diversified on the surface — different instruments, different charts — can carry effectively the same directional risk if their price action tends to move together. A losing move in one scenario becomes a losing move in both simultaneously, which is a materially different risk profile than the trader may have intended when opening each position separately.
- Check the correlation matrix before adding a new position to an already-open book, not just after
- A cluster of highly correlated positions functions more like one large position than several small ones for risk purposes
- Correlation isn't static — recalculate periodically, as relationships between instruments shift over time (see our recent piece on BTC and tech-stock correlation breaking down for a concrete example)
Access the tool from the Risk tab in your dashboard. It updates in real time as you open and close positions.
