What is the correlation between digital currencies and Vanguard ETF S&P 500?

3 answers

• Dec 28, 2021 · 3 years ago
  Digital currencies and Vanguard ETF S&P 500 have a limited correlation. While both are investment options, they operate in different markets. Digital currencies are decentralized and highly volatile, influenced by various factors such as market demand, regulations, and technological advancements. On the other hand, Vanguard ETF S&P 500 is a traditional investment vehicle that tracks the performance of the S&P 500 index, which consists of 500 large-cap U.S. stocks. The correlation between the two is not significant, as they cater to different investor preferences and risk appetites.
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• Dec 28, 2021 · 3 years ago
  The correlation between digital currencies and Vanguard ETF S&P 500 is relatively low. Digital currencies, such as Bitcoin and Ethereum, are known for their high volatility and speculative nature. They are influenced by factors like market sentiment, technological advancements, and regulatory developments. On the other hand, Vanguard ETF S&P 500 aims to replicate the performance of the S&P 500 index, which represents a broad range of U.S. stocks. While both digital currencies and Vanguard ETF S&P 500 are investment options, they serve different purposes and attract different types of investors.
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• Dec 28, 2021 · 3 years ago
  When it comes to the correlation between digital currencies and Vanguard ETF S&P 500, it's important to note that the two operate in separate markets. Digital currencies are decentralized and traded on cryptocurrency exchanges, while Vanguard ETF S&P 500 is a traditional investment vehicle traded on stock exchanges. The correlation between the two depends on various factors, including market conditions, investor sentiment, and economic events. However, it's generally observed that the correlation is not strong, as digital currencies are often influenced by different factors than the performance of the S&P 500 index.
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