Diversification
Whether your money is really spread out or only looks like it — a 0–100 score and its breakdown, independent bets, coins that move as one, which coins diversify you, what would improve your score, diversification over time and the concentration curve.
Diversification answers a question that the number of coins you hold cannot: is your money really spread out, or does it only look like it?
Owning twenty coins that all rise and fall with Bitcoin is, in practice, owning one bet twenty times. This page measures how your coins actually move together and tells you how many genuinely different investments you have.
The five figures
| Figure | What it tells you |
|---|---|
| Diversification score | A mark from 0 to 100, with its assessment: Highly concentrated (under 20), Concentrated (20–39), Partly diversified (40–59), Well diversified (60–79), Very diversified (80 and above) |
| Independent bets | How many truly different investments your portfolio behaves like, based on how your coins moved together over the last year. 1 means everything moves as one |
| Swing reduction | How much less your portfolio swings than your coins do on their own. 0% means holding them together softens nothing |
| Average correlation | How closely your coins move with each other, weighted by size: 1 means always together, 0 means no link |
| Effective sectors | How many sectors of equal size your money behaves like, out of how many you hold |
Independent bets is the figure to remember. It is usually much lower than people expect, because most of the crypto market moves with Bitcoin.
Score breakdown
The score is built from five parts. Each is marked from 0 to 100 and counts for the share shown in the last column:
| Part | Full marks when | Weight |
|---|---|---|
| Spread across coins | Your money is spread like 10 equal-sized coins | 25% |
| Independent moves | Your portfolio behaves like 3 independent bets | 30% |
| Spread across sectors | Your money is spread like 4 equal sectors | 20% |
| Networks and wallets | Your holdings sit on 3 networks and in 2 wallets | 10% |
| Stable ballast | At least 10% is in stablecoins | 15% |
Each part shows its current state — for example 4.2 effective of 12 — so you can see which part is pulling your score down.
Coins that move as one
Groups of your coins whose daily moves have been closely linked over the last year, with each group's share of your money and how tightly its coins move together. Coins that do not belong to any group are listed as On their own.
How to use it: owning several coins from the same group spreads your money but not your risk. If one group holds most of your money, your portfolio will behave like that group.
Diversifiers
Each coin's link to the rest of your portfolio, from −1 to 1, with its share of your money:
- Near 1 — move together: it adds little that you do not already have
- Around 0.4 to 0.7 — partly linked
- Near 0 or below — mostly independent or independent: it genuinely smooths your portfolio
Click a coin to open it.
How to use it: the coins near the bottom of this list are the ones doing the diversifying. If you want to reduce risk without selling everything, those are the ones to hold more of.
What would improve it
What your score would become after one simple change, measured on the same year of prices:
- Cap your largest coin at 50%
- Move 10% into BTC
- Move 10% into ETH
- Move 10% into stablecoins
Each shows the new score, the difference, the number of independent bets and how much the portfolio would swing in a year.
A higher score is not always less risk: moving money into a more volatile coin can raise the score and the swings at the same time. The page shows both so you can decide.
Diversification over time
Two lines over 1M, 3M, 6M, 1Y or ALL:
- Effective coins — how many equal-sized coins your portfolio behaved like each day
- Largest holding — the share of your biggest coin each day
When one coin rises much faster than the rest, the effective number falls and the largest holding rises — your portfolio becomes more concentrated without you doing anything.
Concentration curve
Your coins ranked from largest to smallest, with the share of your money they add up to. The dotted line is a perfectly even split; the further your curve bends above it, the more concentrated you are.
The Gini index sums it up: 0 means everything is split evenly; 1 means everything is in one coin.
Notes about the data
Coins without enough price history cannot be measured for correlation. When that happens, and when sectors are still being worked out, it is said in a notes about this data button.
Related
- Your score also appears in the Diversification score card of the Overview
- How your money is split by coin, sector, wallet and network: Allocation
- How much each coin contributes to your swings: Risk & returns