dxFeed has launched the Crypto Ortho 500 Index based on the decorrelation between stocks and crypto

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NEW YORK, Dec. 22, 2022 /PRNewswire/ — dxFeed, a leading provider of data and index management solutions for the global financial industry, both traditional and crypto, has launched the dxFeed Crypto Ortho Index 500, also called COSM. The index reflects the market price of a selected cryptocurrency portfolio that minimizes correlation with the broader stock market represented by the S&P 5001 Index.

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dxFeed Crypto Ortho-S&P 500 Index

Portfolio weightings are optimized using a custom numerical procedure. Care is taken to avoid bias (e.g. outlier removal is performed during index construction) and to ensure that the statistical properties of the index remain relatively stable after the end of the parameter estimation. The resulting instrument can therefore be considered as an investment alternative to the broader market and can be used in portfolio diversification scenarios.

“Although cryptocurrencies are highly correlated as an asset class, the index achieves half the correlation of Bitcoin against the S&P 5001 index during certain periods. In my opinion, this is an impressive result achieved by the dxFeed quant team”, comments Oleg Solodukhin, CEO of dxFeed.

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

The company launched its index pool in the fall of 2022 by introducing dxFeed Bixie, a crypto-twin of the US Dollar Index (“USDX”), and dxFeed Honest Gold Index (“HAU”).

About dxFeed

dxFeed is a leading market data and services provider and calculation agent for the capital markets industry. According to the WatersTechnology 2022 IMD & IRD Awards, it is the “Most Innovative Market Data Project”. dxFeed is primarily focused on providing financial information and services to buying and selling institutions in the global markets, both traditional and crypto. This includes brokers, prop traders, exchanges, individuals (traders, quants and portfolio managers) and universities (educational institutions and researchers).

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Media contact: Kate ZapekinaHead of Marketing and [email protected]+1 201 685-9280

1 A registered trademark of Standard & Poor’s Financial Services LLC or its affiliates

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