Market Views and Research

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On correlation between crypto and stocks

Posted on 14th Jul 2020
#Cryptocurrencies #stocks #correlation

The easiest way to monitor how these two assets co-behave is through studying asset class correlations. The correlation between Bitcoin and the S&P500 over the last 3 months stands at 0.11. Meanwhile if we look at the same number towards the end of June 2020, it read 0.26. So correlations have been high but they have also been falling. In this Views piece we go into a bit of the recent history of the correlation between stocks, volatility and Bitcoin. ... Read More

Six S&P500 stocks that outperformed during the sell-off

Posted on 2nd Jul 2020
#market views #stocks #diversification

One of the more interesting things I've observed in the markets over recent years is that while there has undoubtedly been inter-asset class integration (meaning during periods of turmoil correlations tend to 1 between stocks, bonds, real estate, commodities etcetera), we have actually observed intra-asset class divergence in many places. Or to put it in a more quantitative way: the correlation of for instance Netflix and Amazon with the S&P500 was lower than that of emerging market stocks and real estate to the S&P500 during the worst of the 2020 sell-off.... Read More

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