Some expected and unexpected names are joining the Bitcoin craze. As Bitcoin has risen to new all-time highs in recent weeks, the volatile cryptocurrency has regained some relevance among traditional investors. The actions also had a knock-on effect on a number of stocks related to digital currency trading, as well as stocks that some may not have anticipated. CNBC Pro identified the stocks that have moved most consistently with Bitcoin over the past 50 trading days. We looked at the relationship between the stock and the flagship cryptocurrency during the period, as well as the average rolling correlation over the same period. The closer the correlation coefficient is to 1, the greater the positive correlation between two assets, meaning they rise and fall together. Meanwhile, a correlation close to -1 indicates a negative correlation, which means they are opposite to each other. Here are the top seven stocks with the highest rolling correlations: The stocks with the highest rolling correlations should come as no surprise. Trading platforms Coinbase and Robinhood, as well as cryptocurrency miners Riot Platforms, Marathon Digital and CleanSpark, are the five stocks with the highest correlation levels. To be sure, this group will diverge in 2024. Coinbase, Robinhood, and CleanSpark have all made considerable gains this year, while Riot and Marathon have declined. Further down the list, the connection between stocks and Bitcoin is less obvious. But investors are similarly helped when they have a risk appetite, which is evident when they buy cryptocurrencies. Take Rivian Automotive Company, for example. The electric car maker has a rolling correlation of 0.31, ranking sixth among screens. The stock was highly volatile during its first few years on the market, suggesting it could be a risky investment. The stock fell more than 80% in 2022, but regained some ground in 2023, rising more than 27%. Now, the stock is down about 47% this year—it’s trading at about $12 a share, though it was above $100 at one point. RIVN ALL mountain Rivian Stock Despite these drastic actions, analysts still tend to see opportunity in this beaten-down stock. More than half have an overweight or buy rating on the security, and the average price target implies a rally of more than 40% over the next 12 months, according to FactSet. Likewise, electric vehicle battery supplier QuantumScape has a correlation of 0.31. The stock has fallen about 14% this year, giving back some of its gains after rising more than 22% in 2023. Wall Street is less optimistic about the stock. Although the average price target among analysts surveyed by FactSet suggests a 17% upside, Wall Street is generally giving the stock a hold rating.
