When bitcoin does well, software stocks do well. But so do tobacco stocks.
Morgan Stanley's cryptocurrency strategy team notes that when comparing
$BTC.CC$ to other asset classes, it has positive correlations to equities, with indexes rising along with the coin.
The
$SPY.US$ has the closest six-month correlation with bitcoin at just above 0.3, followed by the
$.IXIC.US$, right above 0.25.
It has negative correlations with the
$USDindex.FX$, around -0.4, gold
$GLD.US$, around -0.6, and the
$US10Y.BD$ 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
$XSW.US$2. Food, Beverage
$PBJ.US$ and Tobacco
3. Materials
$XLB.US$4. Media & Entertainment
$Ishares Evolved U.S. Media And Entertainment Etf.US$5. Commercial & Professional Services
6. Healthcare Equipment & Services
$XHE.US$7. Automobiles & Components
$CARZ.US$8. Diversified Financials
$XLF.US$9. Insurance
$IAK.US$10. Household & Personal Products
$XLP.US$Bitcoin finished last week up more than 5%, while the S&P dropped 0.3%, snapping a five-week winning streak.
William Paul : Bitcoin is basically a play against modern monetary theory
fly up high : Absolutely crazy. Proof once again that facts can be stranger than fiction. And yet another reminder that correlation does not imply cause and effect.
Indicator analyst : I wish people stop comparing bitcoin or any cryptocurrencies to any asset class. To me, it’s like comparing a unicorn to a horse race.
Drdrdoky : Not sure what week. Last week vets day to Friday 68 to 64k.
UANM5SC6Ea : So basically BTC is a relatively uncorrelated/asymmetric asset as we already knew.
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