Correlation Between Ninepoint Bitcoin and IShares SP
Can any of the company-specific risk be diversified away by investing in both Ninepoint Bitcoin and IShares 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 IShares 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 iShares SP Small Cap, you can compare the effects of market volatilities on Ninepoint Bitcoin and IShares 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 IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Bitcoin and IShares SP.
Diversification Opportunities for Ninepoint Bitcoin and IShares SP
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ninepoint and IShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Bitcoin ETF and iShares SP Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP Small 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP Small has no effect on the direction of Ninepoint Bitcoin i.e., Ninepoint Bitcoin and IShares SP go up and down completely randomly.
Pair Corralation between Ninepoint Bitcoin and IShares SP
Assuming the 90 days trading horizon Ninepoint Bitcoin ETF is expected to generate 1.86 times more return on investment than IShares SP. However, Ninepoint Bitcoin is 1.86 times more volatile than iShares SP Small Cap. It trades about 0.13 of its potential returns per unit of risk. iShares SP Small Cap is currently generating about 0.06 per unit of risk. If you would invest 1,064 in Ninepoint Bitcoin ETF on September 12, 2024 and sell it today you would earn a total of 1,556 from holding Ninepoint Bitcoin ETF or generate 146.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ninepoint Bitcoin ETF vs. iShares SP Small Cap
Performance |
| Timeline |
| Ninepoint Bitcoin ETF |
| iShares SP Small |
Ninepoint Bitcoin and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Bitcoin and IShares SP
The main advantage of trading using opposite Ninepoint Bitcoin and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Bitcoin position performs unexpectedly, IShares 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 IShares SP will offset losses from the drop in IShares SP'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 SP vs. iShares SP Small Cap | IShares SP vs. iShares SP Mid Cap | IShares SP vs. iShares SP Mid Cap | IShares SP vs. iShares Core SP |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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