dxFeed Launches Crypto Ortho Index Based on Decorrelation Between Stocks and Crypto

dxFeed, a leading provider of data services for the Capital Markets industry, has launched the dxFeed Crypto Ortho Index also referred as COSM™. The index reflects a selected cryptocurrency portfolio's market price that minimizes the correlation with the broad stock market represented by the S&P 500®1 index.

"Although cryptocurrencies are strongly correlated as an asset class, the index achieves correlation twice as low as the Bitcoin against the S&P 5001 index during certain periods. In my opinion, it's an impressive result achieved by the dxFeed quant team," commented Oleg Solodukhin, CEO at dxFeed.

COSM is based on a more general dxFeed Benchmark Orthogonal-Collinear index methodology, which allows to construct similar indices, but for different benchmarks and correlation optimization types.

The firm started its indices pool in the fall of 2022 by introducing dxFeed Bixie​, a US Dollar Index ("USDX") crypto-twin, and dxFeed Honest Gold Index ("HAU").