Correlation Between Ninepoint Bitcoin and Harvest Eli

Can any of the company-specific risk be diversified away by investing in both Ninepoint Bitcoin and Harvest Eli 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 Harvest Eli 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 Harvest Eli Lilly, you can compare the effects of market volatilities on Ninepoint Bitcoin and Harvest Eli 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 Harvest Eli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Bitcoin and Harvest Eli.

Diversification Opportunities for Ninepoint Bitcoin and Harvest Eli

-0.84

Correlation Coefficient

Ninepoint Bitcoin  Harvest Eli

Pay attention - limited upside

The 3 months correlation between Ninepoint and Harvest is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Bitcoin ETF and Harvest Eli Lilly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Eli Lilly 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 Harvest Eli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Eli Lilly has no effect on the direction of Ninepoint Bitcoin i.e., Ninepoint Bitcoin and Harvest Eli go up and down completely randomly.

Pair Corralation between Ninepoint Bitcoin and Harvest Eli

Assuming the 90 days trading horizon Ninepoint Bitcoin ETF is expected to generate 1.09 times more return on investment than Harvest Eli. However, Ninepoint Bitcoin is 1.09 times more volatile than Harvest Eli Lilly. It trades about 0.26 of its potential returns per unit of risk. Harvest Eli Lilly is currently generating about -0.08 per unit of risk. If you would invest  1,636  in Ninepoint Bitcoin ETF on September 5, 2024 and sell it today you would earn a total of  886.00  from holding Ninepoint Bitcoin ETF or generate 54.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Ninepoint Bitcoin ETF  vs.  Harvest Eli Lilly

Ninepoint Bitcoin ETF

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ninepoint Bitcoin ETF are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Ninepoint Bitcoin displayed solid returns over the last few months and may actually be approaching a breakup point.

Harvest Eli Lilly

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harvest Eli Lilly has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Etf's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Pair Trading with Ninepoint Bitcoin and Harvest Eli

The main advantage of trading using opposite Ninepoint Bitcoin and Harvest Eli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Bitcoin position performs unexpectedly, Harvest Eli 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 Harvest Eli will offset losses from the drop in Harvest Eli's long position.

The idea behind Ninepoint Bitcoin ETF and Harvest Eli Lilly pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.