Correlation Between Ninepoint Bitcoin and BetaPro SP
Can any of the company-specific risk be diversified away by investing in both Ninepoint Bitcoin and BetaPro SP 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 SP 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 SP 500, you can compare the effects of market volatilities on Ninepoint Bitcoin and BetaPro SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Bitcoin and BetaPro SP.
Diversification Opportunities for Ninepoint Bitcoin and BetaPro SP
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ninepoint and BetaPro is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Bitcoin ETF and BetaPro SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro SP 500 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro SP 500 has no effect on the direction of Ninepoint Bitcoin i.e., Ninepoint Bitcoin and BetaPro SP go up and down completely randomly.
Pair Corralation between Ninepoint Bitcoin and BetaPro SP
Assuming the 90 days trading horizon Ninepoint Bitcoin ETF is expected to generate 3.08 times more return on investment than BetaPro SP. However, Ninepoint Bitcoin is 3.08 times more volatile than BetaPro SP 500. It trades about 0.11 of its potential returns per unit of risk. BetaPro SP 500 is currently generating about -0.07 per unit of risk. If you would invest 687.00 in Ninepoint Bitcoin ETF on August 25, 2024 and sell it today you would earn a total of 1,744 from holding Ninepoint Bitcoin ETF or generate 253.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ninepoint Bitcoin ETF vs. BetaPro SP 500
Performance |
| Timeline |
| Ninepoint Bitcoin ETF |
| BetaPro SP 500 |
Ninepoint Bitcoin and BetaPro SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Bitcoin and BetaPro SP
The main advantage of trading using opposite Ninepoint Bitcoin and BetaPro SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Bitcoin position performs unexpectedly, BetaPro SP 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 SP will offset losses from the drop in BetaPro SP's long position.| Ninepoint Bitcoin vs. 3iQ Bitcoin ETF | Ninepoint Bitcoin vs. Purpose Bitcoin CAD | Ninepoint Bitcoin vs. 3iQ CoinShares Ether | Ninepoint Bitcoin vs. BetaPro Inverse Bitcoin |
| BetaPro SP vs. BetaPro SPTSX 60 | BetaPro SP vs. BetaPro NASDAQ 100 2x | BetaPro SP vs. BetaPro SP 500 | BetaPro SP vs. BetaPro Gold Bullion |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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