What is the correlation coefficient between Bitcoin and other stocks?

1 answers

• Mar 19, 2022 · 3 years ago
  At BYDFi, we have observed that the correlation coefficient between Bitcoin and other stocks can vary over time. In some periods, we have seen a positive correlation, indicating that Bitcoin's price movements are aligned with the broader stock market. However, there have also been periods of negative correlation, where Bitcoin's price movements have diverged from the stock market. This highlights the importance of diversification in a portfolio. While Bitcoin can provide unique investment opportunities, it's crucial to have a diversified portfolio that includes a mix of assets, including stocks, to mitigate risk. Investors should carefully analyze the correlation coefficient and consider their investment goals and risk tolerance before making any decisions.
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