Cathie Wood's Ark Invest Bet Big On Robinhood, Coinbase With Over $1B Invested: Which Of The 2 Crypto-Linked Stocks Is Doing Better This Year?

Cathie Wood, the CEO of ARK Investment Management, and an experienced investor, continues to showcase her optimistic stance on the cryptocurrency industry. ARK Invest since 2022 augmented its position in Coinbase Inc COIN and Robinhood Markets Inc HOOD by adding a total of $1.13 billion in shares, as of writing.

What Happened: ARK Invest holds stakes in both Coinbase and Robinhood through multiple funds, including ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW). 

Wood’s holdings in COIN amount to over $838 million, while her stake in HOOD surpasses $293 million. 

Now, let’s delve into a performance analysis of HOOD and COIN, comparing their year-to-date progress in the market.

A Year-Long Comparison: HOOD vs. COIN

Taking into account the performance over the last year, we find that both HOOD and COIN have witnessed substantial changes. A year ago, the stock price of HOOD stood at $8.08, and now it has risen to $9.76, representing a 20.79% increase. In contrast, COIN started at $33.6 and is currently valued at $89.07, boasting an impressive 165.09% surge in the stock price.

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Returns Analysis: HOOD vs. COIN

Delving deeper into the returns delivered by HOOD and COIN, it is worth noting that the final value of a $1,000 investment in HOOD has reached $1,207.92. On the other hand, the same investment in COIN has grown to $2,650.89. This signifies a substantial difference of $1,442.97 in returns. In terms of percentage change, HOOD shows a 20.79% increase, while COIN exhibits a considerably greater growth of 165.09%.

Market Correlation: Do HOOD and COIN Move Together?

To determine the correlation between HOOD and COIN, it is important to evaluate their relationship in terms of price movement. The coefficient of determination, or R2 value, stands at 0.6261. This suggests that there exists a degree of correlation between the two stocks, although it may not be considered strong. Thus, while there may be some similarities in their price movements, they are influenced by additional factors unique to each company.

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