JPMorgan’s Bitcoin Math: Low Correlation, Same-Size Drops
Photo: Coindoo
Key Takeaways JPMorgan’s inputs: 0.33 correlation, 55% versus 18% volatility 20% stock drop implies roughly 20% Bitcoin drop IMF found correlation rose from 0.01 to 0.36 Stress case: 5% Bitcoin adds 1.4-point loss In a November 4 note , Grayscale Head of Research Zach Pandl called Bitcoin a potentially attractive portfolio diversifier, pointing out that its estimated correlation with U.S. large caps “is just 33%.” Grayscale sells Bitcoin investment products, and the note builds on figures from J.P. Morgan Asset Management’s 2027 Long-Term Capital Market Assumptions, released October 19.
Source: Coindoo
