When bitcoin does well, software stocks do well. But so do tobacco stocks. Morgan Stanley's cryptocurrency strategy team notes that when comparing bitcoin (BTC-USD) to other asset classes, it has positive correlations to equities, with indexes rising along with the coin. The S&P 500 (SP500) (NYSEARCA:SPY) has the closest six-month correlation with bitcoin at just above 0.3, followed by the Nasdaq (COMP.IND) (NASDAQ:QQQ), right above 0.25. It has negative correlations with the U.S. dollar index (USDOLLAR), around -0.4, gold (NYSEARCA:GLD), around -0.6, and the 10-year Treasury yield (NYSEARCA:TBT) around -0.9. "Below the (equity) index level, the correlations vary widely across sectors," David Adelman, Morgan Stanley director of equities strategy for the Americas writes in a note. The top 10 most correlated subsectors are: Software & Services (NYSEARCA:XSW) Food, Beverage (NYSEARCA:PBJ) and Tobacco Materials (NYSEARCA:XLB) Media & Entertainment (BATS:IEME) Commercial & Professional Services Healthcare Equipment & Services (NYSEARCA:XHE) Automobiles & Components (NASDAQ:CARZ) Diversified Financials
