Hey there! So, when you're investing, it's not clever to put all your cash into just one thing. But even when you're spreading your money across different investments, it's important to think about how they vibe together. To play it safe, always look for investments that either have a low correlation or, if you're lucky, even a negative one. đȘ
Check this out: I've got the correlation stats for 6 cryptos against BTC over the last 5 years, 1 year, and 6 months. Plus, I've thrown in the S&P Index and Gold against BTC, just to give you a taste of other options. This way, you can see how the correlations have been dancing around over different periods.
Basically, in the past year, BTC and the S&P Index had zero correlation, but in the last 6 months, they started getting along better again (positive correlation). Also, in the last 6 months, BTC and gold exhibited negative correlation, which some investors find pretty sweet. đŹ
If you wanna try it out yourself, just grab the daily data for the investments and timeframes you're interested in, and use the CORREL function in Excel. đ
Important: Historical correlation can change in the next periods and correlations tend to increase during stress times! #Write2Earn #TrendingTopic #BTC #Launchpool #DASH
