Correlation Between BetaPro Inverse and Ninepoint Bitcoin
Can any of the company-specific risk be diversified away by investing in both BetaPro Inverse and Ninepoint Bitcoin 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 BetaPro Inverse and Ninepoint Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro Inverse Bitcoin and Ninepoint Bitcoin ETF, you can compare the effects of market volatilities on BetaPro Inverse and Ninepoint Bitcoin 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 BetaPro Inverse with a short position of Ninepoint Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro Inverse and Ninepoint Bitcoin.
Diversification Opportunities for BetaPro Inverse and Ninepoint Bitcoin
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BetaPro and Ninepoint is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro Inverse Bitcoin and Ninepoint Bitcoin ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ninepoint Bitcoin ETF and BetaPro Inverse 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 BetaPro Inverse Bitcoin are associated (or correlated) with Ninepoint Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ninepoint Bitcoin ETF has no effect on the direction of BetaPro Inverse i.e., BetaPro Inverse and Ninepoint Bitcoin go up and down completely randomly.
Pair Corralation between BetaPro Inverse and Ninepoint Bitcoin
Assuming the 90 days trading horizon BetaPro Inverse Bitcoin is expected to under-perform the Ninepoint Bitcoin. But the etf apears to be less risky and, when comparing its historical volatility, BetaPro Inverse Bitcoin is 1.22 times less risky than Ninepoint Bitcoin. The etf trades about -0.15 of its potential returns per unit of risk. The Ninepoint Bitcoin ETF is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,964 in Ninepoint Bitcoin ETF on January 25, 2025 and sell it today you would lose (201.00) from holding Ninepoint Bitcoin ETF or give up 10.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
BetaPro Inverse Bitcoin vs. Ninepoint Bitcoin ETF
Performance |
| Timeline |
| BetaPro Inverse Bitcoin |
| Ninepoint Bitcoin ETF |
BetaPro Inverse and Ninepoint Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro Inverse and Ninepoint Bitcoin
The main advantage of trading using opposite BetaPro Inverse and Ninepoint Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro Inverse position performs unexpectedly, Ninepoint Bitcoin 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 Bitcoin will offset losses from the drop in Ninepoint Bitcoin's long position.| BetaPro Inverse vs. 3iQ Bitcoin ETF | BetaPro Inverse vs. Purpose Bitcoin ETF | BetaPro Inverse vs. 3iQ CoinShares Ether | BetaPro Inverse vs. BetaPro SP 500 |
| Ninepoint Bitcoin vs. 3iQ Bitcoin ETF | Ninepoint Bitcoin vs. Purpose Bitcoin ETF | Ninepoint Bitcoin vs. 3iQ CoinShares Ether | Ninepoint Bitcoin vs. BetaPro Inverse Bitcoin |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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