Which cryptocurrencies have the highest correlation with the NAV of VXX?

khasirMar 15, 2022 · 3 years ago3 answers

I'm interested in finding out which cryptocurrencies have the highest correlation with the Net Asset Value (NAV) of VXX. Can you provide some insights on this? Specifically, I'd like to know which cryptocurrencies tend to move in the same direction as VXX and which ones have the strongest correlation. Additionally, it would be helpful to understand how this correlation can impact investment decisions in the cryptocurrency market.

Cryptocurrencies

NAV

VXX

3 answers

Nicholas RohlmanDec 13, 2021 · 4 years ago
When it comes to the correlation between cryptocurrencies and the NAV of VXX, it's important to note that the cryptocurrency market is highly volatile and can be influenced by various factors. However, some cryptocurrencies have shown a tendency to move in the same direction as VXX. For example, Bitcoin and Ethereum have historically exhibited a moderate positive correlation with VXX. This means that when VXX goes up, these cryptocurrencies also tend to go up, and vice versa. It's worth mentioning that correlation does not imply causation, so it's essential to consider other factors before making investment decisions.
Angela ThomasMar 12, 2025 · 3 months ago
If you're looking for cryptocurrencies with a strong correlation to the NAV of VXX, you might want to consider stablecoins like Tether (USDT) or USD Coin (USDC). These cryptocurrencies are designed to maintain a stable value, often pegged to a fiat currency like the US dollar. As a result, their price movements are less volatile compared to other cryptocurrencies. This stability can lead to a higher correlation with the NAV of VXX, which is based on the volatility of the S&P 500 index. However, it's important to note that stablecoins may not offer the same potential for high returns as other cryptocurrencies.
Naveen YadavMar 31, 2021 · 4 years ago
According to our analysis at BYDFi, the cryptocurrency with the highest correlation to the NAV of VXX is Bitcoin. Bitcoin has consistently shown a strong positive correlation with VXX, especially during periods of market uncertainty. This correlation can be attributed to the perception of Bitcoin as a safe haven asset, similar to gold. When investors seek refuge from market volatility, they often turn to Bitcoin, leading to an increase in its price and a positive correlation with VXX. However, it's important to conduct thorough research and consider other factors before making any investment decisions.