Bitcoin’s correlation to stock index S&P 500 has declined significantly, hinting that the two asset classes no longer move in the same direction.
The current correlation between the two asset classes is 0.15, which means it is nearly negligible. About a month ago, on April 16, the correlation was moderately positive at 0.53.
Source: TradingView, The Block Research
A near-zero correlation between two assets indicates that there is no relationship between them or that they do not move in the same direction.
Correlation is expressed as a number between +1 and -1. +1 indicates an absolute positive correlation between two assets, meaning they always move together in the same direction. -1 indicates a total negative correlation, meaning two assets always move in opposite directions of each other.
Having two low-correlated or uncorrelated assets in a portfolio helps lower overall volatility.