Bitcoin vs Ethereum (Z-Score Normalized)

This chart compares normalized Bitcoin (BTC) and Ethereum (ETH) prices over the last 180 days using Z-score standardization. Z-scores are calculated as:

Z = (Price - Mean) / Standard Deviation

This allows us to compare both assets on the same scale, even though they have different price levels. Z-scores highlight how each asset's price deviates from its own mean, making relative behavior and volatility easier to visualize.

How to Interpret Cross-Correlation vs Lag

The cross-correlation plot shows how closely BTC and ETH move together with different time lags applied. Each point on the x-axis represents a shift (lag) in days applied to the ETH Z-score series:

• Lag = 0: BTC and ETH are compared without any time shift (same-day correlation).
• Lag > 0: ETH is shifted into the future — if correlation is strong here, ETH lags BTC.
• Lag < 0: ETH is shifted backward — if correlation is strong here, ETH leads BTC.

The lag at which the maximum correlation occurs suggests a potential lead-lag relationship:

• If the peak occurs at Lag < 0, ETH tends to move before BTC.
• If the peak occurs at Lag > 0, ETH tends to move after BTC.

These relationships are statistical in nature, and while useful for exploring influence or response behaviors, they do not imply causation.