Correlation Between Ninepoint Bitcoin and Harvest Nvidia

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

Diversification Opportunities for Ninepoint Bitcoin and Harvest Nvidia

0.54

Correlation Coefficient

Ninepoint Bitcoin  Harvest Nvidia

Very weak diversification

The 3 months correlation between Ninepoint and Harvest is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Bitcoin ETF and Harvest Nvidia Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Nvidia Enhanced 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 Nvidia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Nvidia Enhanced has no effect on the direction of Ninepoint Bitcoin i.e., Ninepoint Bitcoin and Harvest Nvidia go up and down completely randomly.

Pair Corralation between Ninepoint Bitcoin and Harvest Nvidia

Assuming the 90 days trading horizon Ninepoint Bitcoin ETF is expected to generate 1.63 times more return on investment than Harvest Nvidia. However, Ninepoint Bitcoin is 1.63 times more volatile than Harvest Nvidia Enhanced. It trades about -0.02 of its potential returns per unit of risk. Harvest Nvidia Enhanced is currently generating about -0.05 per unit of risk. If you would invest  2,508  in Ninepoint Bitcoin ETF on December 27, 2024 and sell it today you would lose (544.00) from holding Ninepoint Bitcoin ETF or give up 21.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Ninepoint Bitcoin ETF  vs.  Harvest Nvidia Enhanced

Ninepoint Bitcoin ETF

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ninepoint Bitcoin ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Harvest Nvidia Enhanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harvest Nvidia Enhanced has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Etf's technical indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Pair Trading with Ninepoint Bitcoin and Harvest Nvidia

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

The idea behind Ninepoint Bitcoin ETF and Harvest Nvidia Enhanced 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.