S&P 500 Correlation

Definition ∞ S&P 500 correlation measures the statistical relationship between the price movements of a particular asset and the S&P 500 index. A high positive correlation suggests that the asset’s price tends to move in the same direction as the S&P 500. Conversely, a negative correlation indicates an inverse relationship. This metric helps investors understand how a specific asset performs relative to the broader United States equity market.
Context ∞ The S&P 500 correlation with Bitcoin and other major cryptocurrencies is a frequently discussed topic in financial news, especially during periods of market volatility. Historically, crypto assets have shown varying degrees of correlation, sometimes acting as uncorrelated assets and other times moving in tandem with traditional markets. Recent trends suggest an increasing correlation, indicating a growing integration of crypto into the wider financial system.