Correlation Between BetaPro Canadian and Ninepoint Energy
Can any of the company-specific risk be diversified away by investing in both BetaPro Canadian 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 BetaPro Canadian and Ninepoint Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro Canadian Gold and Ninepoint Energy, you can compare the effects of market volatilities on BetaPro Canadian 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 BetaPro Canadian with a short position of Ninepoint Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro Canadian and Ninepoint Energy.
Diversification Opportunities for BetaPro Canadian and Ninepoint Energy
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BetaPro and Ninepoint is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro Canadian Gold and Ninepoint Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ninepoint Energy and BetaPro Canadian 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 Canadian Gold 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 has no effect on the direction of BetaPro Canadian i.e., BetaPro Canadian and Ninepoint Energy go up and down completely randomly.
Pair Corralation between BetaPro Canadian and Ninepoint Energy
Assuming the 90 days trading horizon BetaPro Canadian Gold is expected to generate 3.08 times more return on investment than Ninepoint Energy. However, BetaPro Canadian is 3.08 times more volatile than Ninepoint Energy. It trades about 0.24 of its potential returns per unit of risk. Ninepoint Energy is currently generating about -0.02 per unit of risk. If you would invest 2,048 in BetaPro Canadian Gold on September 14, 2024 and sell it today you would earn a total of 418.00 from holding BetaPro Canadian Gold or generate 20.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro Canadian Gold vs. Ninepoint Energy
Performance |
| Timeline |
| BetaPro Canadian Gold |
| Ninepoint Energy |
BetaPro Canadian and Ninepoint Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro Canadian and Ninepoint Energy
The main advantage of trading using opposite BetaPro Canadian and Ninepoint Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro Canadian 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.| BetaPro Canadian vs. BetaPro Gold Bullion | BetaPro Canadian vs. BetaPro NASDAQ 100 2x | BetaPro Canadian vs. BetaPro SP TSX | BetaPro Canadian vs. BetaPro SP TSX |
| Ninepoint Energy vs. Ninepoint Bitcoin ETF | Ninepoint Energy vs. Ninepoint Bitcoin ETF | Ninepoint Energy vs. Ninepoint Web3 Innovators | Ninepoint Energy vs. Ninepoint Energy Income |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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