When bitcoin does well, software stocks do well. But so do tobacco stocks.
Morgan Stanley's cryptocurrency strategy team notes that when comparing
$Bitcoin (BTC.CC)$ to other asset classes, it has positive correlations to equities, with indexes rising along with the coin.
The
$SPDR S&P 500 ETF (SPY.US)$ has the closest six-month correlation with bitcoin at just above 0.3, followed by the
$Nasdaq Composite Index (.IXIC.US)$, right above 0.25.
It has negative correlations with the
$USD (USDindex.FX)$, around -0.4, gold
$SPDR Gold ETF (GLD.US)$, around -0.6, and the
$U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ around -0.9.
"Below the (equity) index level, the correlations vary widely across sectors," David Adelman, Morgan Stanley director of equities strategy for the Americas writes in a note.
The top 10 most correlated subsectors are:
1. Software & Services
$Spdr Series Trust S&P Computer Software Etf (XSW.US)$2. Food, Beverage
$Invesco Food & Beverage ETF (PBJ.US)$ and Tobacco
3. Materials
$Materials Select Sector SPDR ETF (XLB.US)$4. Media & Entertainment
$Ishares Evolved U.S. Media And Entertainment Etf (IEME.US)$5. Commercial & Professional Services
6. Healthcare Equipment & Services
$Spdr S&P Health Care Equipment (XHE.US)$7. Automobiles & Components
$Nasdaq Global Auto Index First Trust (CARZ.US)$8. Diversified Financials
$Financial Select Sector SPDR Fund (XLF.US)$9. Insurance
$Ishares Trust U.S. Insurance Etf (IAK.US)$10. Household & Personal Products
$Consumer Staples Select Sector SPDR Fund (XLP.US)$Bitcoin finished last week up more than 5%, while the S&P dropped 0.3%, snapping a five-week winning streak.
Giovanni Ayala :![thinking_face 🤔](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f914.png)
![face_with_monocle 🧐](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f9d0.png)
稳投小黑 : Nope. ETF never halves
搞经济 抄底 加仓 OP 稳投小黑 : yap. stock (combine)