RUSSELL Divergence
Analysis
Negative Short-Term Correlation Highlights Temporary ETH–Russell Divergence
15 January 2026 - 18:00 CET
Ethereum and the Russell 2000 have maintained a persistently strong long-term relationship since 2020.
A high positive correlation means the assets tend to rise and fall together, while a negative correlation indicates they are moving in opposite directions. In this context, rolling correlations help distinguish between short-term divergence and long-term structural relationships by comparing behavior across different time windows.
The one-year rolling correlation spends most of its time between roughly 0.6 and 0.9, compressing during periods of stress but rarely breaking down. Sustained low or negative one-year correlation has occurred only once, in mid-2022, and required prolonged confirmation rather than a short-term shock. Outside that episode, long-horizon co-movement has remained intact.