Correlation Between NBI High and 3iQ CoinShares

Can any of the company-specific risk be diversified away by investing in both NBI High and 3iQ CoinShares 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 NBI High and 3iQ CoinShares into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NBI High Yield and 3iQ CoinShares Ether, you can compare the effects of market volatilities on NBI High and 3iQ CoinShares 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 NBI High with a short position of 3iQ CoinShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBI High and 3iQ CoinShares.

Diversification Opportunities for NBI High and 3iQ CoinShares

-0.77

Correlation Coefficient

NBI High  3iQ CoinShares

Pay attention - limited upside

The 3 months correlation between NBI and 3iQ is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding NBI High Yield and 3iQ CoinShares Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3iQ CoinShares Ether and NBI High 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 NBI High Yield are associated (or correlated) with 3iQ CoinShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3iQ CoinShares Ether has no effect on the direction of NBI High i.e., NBI High and 3iQ CoinShares go up and down completely randomly.

Pair Corralation between NBI High and 3iQ CoinShares

Assuming the 90 days trading horizon NBI High Yield is expected to generate 0.09 times more return on investment than 3iQ CoinShares. However, NBI High Yield is 11.02 times less risky than 3iQ CoinShares. It trades about 0.05 of its potential returns per unit of risk. 3iQ CoinShares Ether is currently generating about -0.16 per unit of risk. If you would invest  2,146  in NBI High Yield on December 28, 2024 and sell it today you would earn a total of  27.00  from holding NBI High Yield or generate 1.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.77%
Values	Daily Returns

NBI High Yield  vs.  3iQ CoinShares Ether

NBI High Yield

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NBI High Yield are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, NBI High is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

3iQ CoinShares Ether

Risk-Adjusted Performance

Very Weak

Over the last 90 days 3iQ CoinShares Ether has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with NBI High and 3iQ CoinShares

The main advantage of trading using opposite NBI High and 3iQ CoinShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBI High position performs unexpectedly, 3iQ CoinShares 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 3iQ CoinShares will offset losses from the drop in 3iQ CoinShares' long position.

The idea behind NBI High Yield and 3iQ CoinShares Ether 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 Transaction History module to view history of all your transactions and understand their impact on performance.