Correlation Between Ninepoint Bitcoin and Global X
Can any of the company-specific risk be diversified away by investing in both Ninepoint Bitcoin and Global X 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 Global X 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 Global X Cash, you can compare the effects of market volatilities on Ninepoint Bitcoin and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Bitcoin and Global X.
Diversification Opportunities for Ninepoint Bitcoin and Global X
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ninepoint and Global is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Bitcoin ETF and Global X Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Cash 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Cash has no effect on the direction of Ninepoint Bitcoin i.e., Ninepoint Bitcoin and Global X go up and down completely randomly.
Pair Corralation between Ninepoint Bitcoin and Global X
Assuming the 90 days trading horizon Ninepoint Bitcoin ETF is expected to generate 18.02 times more return on investment than Global X. However, Ninepoint Bitcoin is 18.02 times more volatile than Global X Cash. It trades about 0.12 of its potential returns per unit of risk. Global X Cash is currently generating about 0.12 per unit of risk. If you would invest 680.00 in Ninepoint Bitcoin ETF on September 12, 2024 and sell it today you would earn a total of 1,940 from holding Ninepoint Bitcoin ETF or generate 285.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ninepoint Bitcoin ETF vs. Global X Cash
Performance |
| Timeline |
| Ninepoint Bitcoin ETF |
| Global X Cash |
Ninepoint Bitcoin and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Bitcoin and Global X
The main advantage of trading using opposite Ninepoint Bitcoin and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Bitcoin position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X'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 |
| Global X vs. CI High Interest | Global X vs. GLOBAL X HIGH | Global X vs. Purpose High Interest | Global X vs. Global X USD |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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