Correlation Between Purpose Bitcoin and Ninepoint Bitcoin
Can any of the company-specific risk be diversified away by investing in both Purpose Bitcoin 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 Purpose Bitcoin and Ninepoint Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Purpose Bitcoin CAD and Ninepoint Bitcoin ETF, you can compare the effects of market volatilities on Purpose Bitcoin 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 Purpose Bitcoin with a short position of Ninepoint Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Purpose Bitcoin and Ninepoint Bitcoin.
Diversification Opportunities for Purpose Bitcoin and Ninepoint Bitcoin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Purpose and Ninepoint is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Purpose Bitcoin CAD 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 Purpose 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 Purpose Bitcoin CAD 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 Purpose Bitcoin i.e., Purpose Bitcoin and Ninepoint Bitcoin go up and down completely randomly.
Pair Corralation between Purpose Bitcoin and Ninepoint Bitcoin
Assuming the 90 days trading horizon Purpose Bitcoin CAD is expected to generate 1.1 times more return on investment than Ninepoint Bitcoin. However, Purpose Bitcoin is 1.1 times more volatile than Ninepoint Bitcoin ETF. It trades about 0.19 of its potential returns per unit of risk. Ninepoint Bitcoin ETF is currently generating about 0.16 per unit of risk. If you would invest 1,728 in Purpose Bitcoin CAD on October 23, 2024 and sell it today you would earn a total of 192.00 from holding Purpose Bitcoin CAD or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Purpose Bitcoin CAD vs. Ninepoint Bitcoin ETF
Performance |
| Timeline |
| Purpose Bitcoin CAD |
| Ninepoint Bitcoin ETF |
Purpose Bitcoin and Ninepoint Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Purpose Bitcoin and Ninepoint Bitcoin
The main advantage of trading using opposite Purpose Bitcoin and Ninepoint Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Purpose Bitcoin 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.| Purpose Bitcoin vs. Purpose Bitcoin Yield | Purpose Bitcoin vs. Purpose Fund Corp | Purpose Bitcoin vs. Purpose Floating Rate | Purpose Bitcoin vs. Purpose Ether Yield |
| Ninepoint Bitcoin vs. 3iQ Bitcoin ETF | Ninepoint Bitcoin vs. Purpose Bitcoin CAD | 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |