Silver, Nasdaq Blockchain Economy Index, Bitcoin, and iShares Semiconductor ETF are always thought of as correlated with each other by investors.

We will test this perception with the corrr package.

#iShares Semiconductor ETF (SOXX)
df_soxx <- 
  tq_get(x = "SOXX") %>% 
  select(date, soxx = close)

#Silver Futures
df_silver <- 
  tq_get("SI=F") %>%
  select(date, silver = close)

#Nasdaq Blockchain Economy Index
df_nasdaq_blockchain <- 
  openxlsx::read.xlsx("https://github.com/mesdi/investingcom/raw/refs/heads/main/nasdaq_blockchain.xlsx",
                      sheet = "History",
                      detectDates = TRUE) %>% 
  as_tibble() %>% 
  janitor::clean_names() %>%
  select(date = trade_date, blcn = index_value)

#Bitcoin
df_btc <- 
  tq_get("BTC-USD") %>% 
  select(date, btc = close)


#Merging the datasets
df_merged <- 
  df_silver %>% 
  left_join(df_soxx) %>% 
  left_join(df_nasdaq_blockchain) %>% 
  left_join(df_btc) %>% 
  drop_na() %>% 
  filter(date >= last(date) - months(36))

#Correlation
d <- correlate(df_merged, quiet = TRUE)

d %>% 
  focus(silver:btc, mirror = TRUE) %>%  
  fashion()

#    term silver soxx blcn  btc
#1 silver         .78  .89  .89
#2   soxx    .78       .85  .80
#3   blcn    .89  .85       .97
#4    btc    .89  .80  .97     

#Network plot
df_merged %>% 
  correlate() %>% 
  network_plot(min_cor = .7,
               legend = "full")


The common perception appears to be correct based on the correlation analysis, specifically between the Nasdaq Blockchain Economy index and Bitcoin.

2 responses to “Correlation Analysis of Silver, Bitcoin, SOXX, and Blockchain Index with {corrr} package”

  1. Henrik Avatar
    Henrik

    Hi,

    Isn’t somthing missing df_silver is never populated.

    Best regards

    Like

    1. Selcuk Disci Avatar

      Sorry, the related code chunk has been added.

      Like

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I’m Selcuk Disci

The DataGeeek focuses on machine learning, deep learning, and Generative AI in data science using financial data for educational and informational purposes.

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