Correlation Between Ninepoint Bitcoin and Ninepoint Energy
Can any of the company-specific risk be diversified away by investing in both Ninepoint Bitcoin and Ninepoint Energy 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 Ninepoint Energy 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 Ninepoint Energy Income, you can compare the effects of market volatilities on Ninepoint Bitcoin and Ninepoint Energy 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 Ninepoint Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Bitcoin and Ninepoint Energy.
Diversification Opportunities for Ninepoint Bitcoin and Ninepoint Energy
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ninepoint and Ninepoint is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Bitcoin ETF and Ninepoint Energy Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ninepoint Energy Income 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 Ninepoint Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ninepoint Energy Income has no effect on the direction of Ninepoint Bitcoin i.e., Ninepoint Bitcoin and Ninepoint Energy go up and down completely randomly.
Pair Corralation between Ninepoint Bitcoin and Ninepoint Energy
Assuming the 90 days trading horizon Ninepoint Bitcoin ETF is expected to generate 1.77 times more return on investment than Ninepoint Energy. However, Ninepoint Bitcoin is 1.77 times more volatile than Ninepoint Energy Income. It trades about 0.09 of its potential returns per unit of risk. Ninepoint Energy Income is currently generating about -0.05 per unit of risk. If you would invest 1,858 in Ninepoint Bitcoin ETF on September 3, 2024 and sell it today you would earn a total of 635.00 from holding Ninepoint Bitcoin ETF or generate 34.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.32% |
| Values | Daily Returns |
Ninepoint Bitcoin ETF vs. Ninepoint Energy Income
Performance |
| Timeline |
| Ninepoint Bitcoin ETF |
| Ninepoint Energy Income |
Ninepoint Bitcoin and Ninepoint Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Bitcoin and Ninepoint Energy
The main advantage of trading using opposite Ninepoint Bitcoin and Ninepoint Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Bitcoin position performs unexpectedly, Ninepoint Energy 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 Ninepoint Energy will offset losses from the drop in Ninepoint Energy'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 |
| Ninepoint Energy vs. Ninepoint Bitcoin ETF | Ninepoint Energy vs. Ninepoint Energy | Ninepoint Energy vs. Ninepoint Bitcoin ETF | Ninepoint Energy vs. Ninepoint Web3 Innovators |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |