Correlation Between Ninepoint Bitcoin and IShares India
Can any of the company-specific risk be diversified away by investing in both Ninepoint Bitcoin and IShares India 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 IShares India 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 iShares India Index, you can compare the effects of market volatilities on Ninepoint Bitcoin and IShares India 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 IShares India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Bitcoin and IShares India.
Diversification Opportunities for Ninepoint Bitcoin and IShares India
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ninepoint and IShares is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Bitcoin ETF and iShares India Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares India Index 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 IShares India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares India Index has no effect on the direction of Ninepoint Bitcoin i.e., Ninepoint Bitcoin and IShares India go up and down completely randomly.
Pair Corralation between Ninepoint Bitcoin and IShares India
Assuming the 90 days trading horizon Ninepoint Bitcoin ETF is expected to generate 4.2 times more return on investment than IShares India. However, Ninepoint Bitcoin is 4.2 times more volatile than iShares India Index. It trades about 0.27 of its potential returns per unit of risk. iShares India Index is currently generating about 0.02 per unit of risk. If you would invest 1,990 in Ninepoint Bitcoin ETF on August 29, 2024 and sell it today you would earn a total of 469.00 from holding Ninepoint Bitcoin ETF or generate 23.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ninepoint Bitcoin ETF vs. iShares India Index
Performance |
| Timeline |
| Ninepoint Bitcoin ETF |
| iShares India Index |
Ninepoint Bitcoin and IShares India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Bitcoin and IShares India
The main advantage of trading using opposite Ninepoint Bitcoin and IShares India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Bitcoin position performs unexpectedly, IShares India 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 IShares India will offset losses from the drop in IShares India'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 |
| IShares India vs. iShares China | IShares India vs. iShares MSCI Emerging | IShares India vs. iShares IG Corporate | IShares India vs. iShares Global Real |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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