Some expected — and unexpected — names are joining the bitcoin frenzy. As bitcoin has rallied to all-time highs in recent weeks, turbulent crypto currencies have regained some relevance among traditional investors. These actions have also had a ripple effect among some stocks tied to trading digital currencies — as well as a handful of names some may not have anticipated.
Pro screened to find the stocks that have moved most in line with bitcoin over the last 50 trading days. We looked at the relationship between the stocks and the flagship crypto over that period, as well as the average rolling correlation over the same time period. The closer a correlation coefficient is to 1, the more positively correlated the two assets are – meaning they rise and fall together.
mountain Rivian shares Despite those sharp actions, analysts tend to see opportunity in the beat-down stock. More than half have overweight or buy ratings on the security, with the average price target implying a bounce of more than 40% within the next 12 months, per FactSet. In a similar vein, electric vehicle battery supplier QuantumScape also had a 0.31 correlation. The stock has dropped about 14% this year, giving up some gains after climbing more than 22% in 2023.