Crypto correlation matrix as hedge

Crypto markets are correlated with each other. It usually does not matter what you buy because everything goes up and down synchronously.

But you can use that to your advantage. I am trying new software for trading crypto called "Vector" (by Nelogica, one of the biggest trading software companies in Brazil) and they have a correlation matrix showing how correlated are all the assets.

When an investment fund does hedge they may buy an asset that is inversely correlated to their investment to profit if the trade goes against them. In crypto that is not easy because almost no asset has a strong inverse correlation (one goes down when the other goes up).

The most inversely correlated pair in my matrix is BTC/LTC, but even that has a correlation of -0.08 meaning that the correlation is not strong. The closer to zero the less correlated and possibly random things are.

But instead of trying to buy something that does the opposite to a hedge, I could buy one asset and sell another correlated one, but that is on theory. I will, when I have time, try to find a good entry and try to buy and sell two highly correlated assets at the same time, for example, buy Bitcoin and sell Ethereum. In theory, this would reduce my gains and losses, but would allow me to take profits off of either the short or long position. That is a thesis only, so I will do that with little money and will keep my blog posted about my findings.