Correlation Between Ninepoint Bitcoin and NBI High
Can any of the company-specific risk be diversified away by investing in both Ninepoint Bitcoin and NBI High at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ninepoint Bitcoin and NBI High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ninepoint Bitcoin ETF and NBI High Yield, you can compare the effects of market volatilities on Ninepoint Bitcoin and NBI High and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ninepoint Bitcoin with a short position of NBI High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Bitcoin and NBI High.
Diversification Opportunities for Ninepoint Bitcoin and NBI High
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ninepoint and NBI is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Bitcoin ETF and NBI High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBI High Yield and Ninepoint Bitcoin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ninepoint Bitcoin ETF are associated (or correlated) with NBI High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBI High Yield has no effect on the direction of Ninepoint Bitcoin i.e., Ninepoint Bitcoin and NBI High go up and down completely randomly.
Pair Corralation between Ninepoint Bitcoin and NBI High
Assuming the 90 days trading horizon Ninepoint Bitcoin ETF is expected to generate 6.07 times more return on investment than NBI High. However, Ninepoint Bitcoin is 6.07 times more volatile than NBI High Yield. It trades about 0.32 of its potential returns per unit of risk. NBI High Yield is currently generating about 0.06 per unit of risk. If you would invest 1,287 in Ninepoint Bitcoin ETF on September 3, 2024 and sell it today you would earn a total of 430.00 from holding Ninepoint Bitcoin ETF or generate 33.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Ninepoint Bitcoin ETF vs. NBI High Yield
Performance |
| Timeline |
| Ninepoint Bitcoin ETF |
| NBI High Yield |
Ninepoint Bitcoin and NBI High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Bitcoin and NBI High
The main advantage of trading using opposite Ninepoint Bitcoin and NBI High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Bitcoin position performs unexpectedly, NBI High can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NBI High will offset losses from the drop in NBI High's long position.| Ninepoint Bitcoin vs. Ninepoint Energy | Ninepoint Bitcoin vs. Ninepoint Bitcoin ETF | Ninepoint Bitcoin vs. Ninepoint Web3 Innovators | Ninepoint Bitcoin vs. Ninepoint Energy Income |
| NBI High vs. NBI Unconstrained Fixed | NBI High vs. NBI Active Canadian | NBI High vs. NBI Sustainable Canadian | NBI High vs. Picton Mahoney Fortified |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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