Correlation Between Ninepoint Bitcoin and BetaPro SPTSX
Can any of the company-specific risk be diversified away by investing in both Ninepoint Bitcoin and BetaPro SPTSX 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 BetaPro SPTSX 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 BetaPro SPTSX Capped, you can compare the effects of market volatilities on Ninepoint Bitcoin and BetaPro SPTSX 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 BetaPro SPTSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Bitcoin and BetaPro SPTSX.
Diversification Opportunities for Ninepoint Bitcoin and BetaPro SPTSX
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ninepoint and BetaPro is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Bitcoin ETF and BetaPro SPTSX Capped in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro SPTSX Capped 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 BetaPro SPTSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro SPTSX Capped has no effect on the direction of Ninepoint Bitcoin i.e., Ninepoint Bitcoin and BetaPro SPTSX go up and down completely randomly.
Pair Corralation between Ninepoint Bitcoin and BetaPro SPTSX
Assuming the 90 days trading horizon Ninepoint Bitcoin ETF is expected to generate 0.83 times more return on investment than BetaPro SPTSX. However, Ninepoint Bitcoin ETF is 1.21 times less risky than BetaPro SPTSX. It trades about 0.11 of its potential returns per unit of risk. BetaPro SPTSX Capped is currently generating about -0.02 per unit of risk. If you would invest 677.00 in Ninepoint Bitcoin ETF on August 28, 2024 and sell it today you would earn a total of 1,754 from holding Ninepoint Bitcoin ETF or generate 259.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ninepoint Bitcoin ETF vs. BetaPro SPTSX Capped
Performance |
| Timeline |
| Ninepoint Bitcoin ETF |
| BetaPro SPTSX Capped |
Ninepoint Bitcoin and BetaPro SPTSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Bitcoin and BetaPro SPTSX
The main advantage of trading using opposite Ninepoint Bitcoin and BetaPro SPTSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Bitcoin position performs unexpectedly, BetaPro SPTSX 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 BetaPro SPTSX will offset losses from the drop in BetaPro SPTSX's long position.| Ninepoint Bitcoin vs. Ninepoint Bitcoin ETF | Ninepoint Bitcoin vs. Ninepoint Energy | Ninepoint Bitcoin vs. Ninepoint Web3 Innovators | Ninepoint Bitcoin vs. Ninepoint Energy Income |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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