Too Long; Didn't Read
The recent crypto slump may present correlation trading or portfolio rebalancing opportunities.
Funds or even retail may look at this to allocate risk across different narratives and find uncorrelated alpha within their crypto allocation. You could also use this to explain certain trends nonetheless.
The z-score measures how ‘stretched’ the 30D correlation (between the daily simple average returns of 2 narratives) is now Vs. the last 4 years or 1 bitcoin cycle.
A high score of +3 would imply that the 2 narratives are way more correlated than expected for that pair, while -3 implies the opposite. The narratives are also clustered based on their similarity in price movements