These are the stocks most correlated to moves in bitcoin

Published Tue, Mar 12 20243:05 PM EDT

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. CNBC 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. Meanwhile, a correlation that's closer to -1 indicates a negative correlation, meaning they move inversely to each other. Here are the top seven names with the highest rolling correlations: The stocks with the highest correlations should come as no surprise. Trading platforms Coinbase and Robinhood , along with crypto miners Riot Platforms , Marathon Digital and CleanSpark , were the equities with the five highest correlation levels. To be sure, this group has diverged in 2024. Coinbase, Robinhood and CleanSpark have all seen sizable advances this year, while Riot and Marathon have slid. Further down the list, the connections between the stocks and bitcoin are less immediately clear. But it appears that they're similarly aided when investors have an appetite for risk that's evident when they buy into the crypto. Take Rivian Automotive , for example. The electric vehicle maker has a rolling correlation of 0.31, clinching the sixth spot on the screen. The stock has swung greatly in its first years as a public company, signaling that it can be a risky investment. Shares tumbled more than 80% in 2022, but regained some ground with a rally of more than 27% in 2023. Now, the stock is down about 47% this year — trading at roughly $12 per share despite once sitting above $100. RIVN ALL 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. Wall Street is less optimistic about the stock. While the average price target of analysts polled by FactSet suggests upside of 17%, the typical person on the Street has a hold rating.