Dow Jones: Bitcoin's correlation with the S&P 500 is 0.21 since November 2014, and its correlation with gold is 0.09

George Milling-Stanley, chief gold strategist at State Street Global Advisors, said gold prices have a very low correlation with stock market movements, estimating that since 1971, gold's correlation with the S&P 500 SPX, +0.03% is mathematically zero. In other words, stock movements have little impact on gold price movements, and vice versa. Dow Jones Market Data analysis shows that since 1975, gold has a rolling correlation of 0.00 with the S&P 500 SPX, +0.00, meaning there is no linear relationship, while a perfect positive correlation is represented by a correlation coefficient of exactly 1. Since November 2014, Bitcoin has a correlation of 0.21 with the S&P 500 and 0.09 with gold. Milling-Stanley said gold has historically provided "considerable protection," including against persistently high inflation, potential weakness in the stock market and potential devaluation of currencies DXY, +0.00. Those protections provide a “very strong message” to investors, which is made “even stronger” by the fact that gold prices have risen more than 30% this year. That said, Bitcoin’s returns over its short lifespan can’t be ignored. “We understand why investors choose to chase returns,” Milling-Stanley said, but investors should “be aware that in their search for returns, they are also adding considerable risk to their portfolios, as Bitcoin has been more volatile than gold over the past 15 years.”