Exploring Bitcoin vs Ethereum: Z-Score Normalization and Cross-Correlation

We're excited to introduce a new interactive analytics page on cognotrend.com that explores the relationship between Bitcoin (BTC) and Ethereum (ETH) using two powerful statistical tools: Z-score normalization and cross-correlation analysis.

This page allows you to visually compare the standardized price movements of BTC and ETH over the past 180 days. Using Z-scores helps neutralize differences in price levels and volatility, enabling meaningful comparisons across assets.

What You’ll See

• Normalized Z-Scores Chart: Tracks how BTC and ETH prices deviate from their respective means, scaled by their standard deviations.
• Cross-Correlation Plot: Measures the lagged relationship between BTC and ETH. Does one asset tend to lead the other?

Why It Matters

Cross-correlation can help identify potential lead-lag dynamics between BTC and ETH. A peak at a negative lag implies that ETH tends to lead BTC. Conversely, a peak at a positive lag suggests BTC might be leading ETH. This can be useful for trading strategies or understanding broader market behavior.

You can explore the full interactive analysis here:

View the BTC-ETH Correlation Analysis →
and more general information on time series normalization techniques.

---

As always, we’re committed to making crypto analytics more intuitive, insightful, and actionable. Let us know what other pairs or metrics you'd like us to cover!