Correlation Between Accelerate Arbitrage and Ninepoint Bitcoin

Can any of the company-specific risk be diversified away by investing in both Accelerate Arbitrage 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 Accelerate Arbitrage and Ninepoint Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Accelerate Arbitrage and Ninepoint Bitcoin ETF, you can compare the effects of market volatilities on Accelerate Arbitrage 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 Accelerate Arbitrage with a short position of Ninepoint Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate Arbitrage and Ninepoint Bitcoin.

Diversification Opportunities for Accelerate Arbitrage and Ninepoint Bitcoin

0.87

Correlation Coefficient

Accelerate Arbitrage  Ninepoint Bitcoin

Very poor diversification

The 3 months correlation between Accelerate and Ninepoint is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Arbitrage 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 Accelerate Arbitrage 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 Accelerate Arbitrage 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 Accelerate Arbitrage i.e., Accelerate Arbitrage and Ninepoint Bitcoin go up and down completely randomly.

Pair Corralation between Accelerate Arbitrage and Ninepoint Bitcoin

Assuming the 90 days trading horizon Accelerate Arbitrage is expected to generate 8.33 times less return on investment than Ninepoint Bitcoin. But when comparing it to its historical volatility, Accelerate Arbitrage is 3.16 times less risky than Ninepoint Bitcoin. It trades about 0.16 of its potential returns per unit of risk. Ninepoint Bitcoin ETF is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest  1,763  in Ninepoint Bitcoin ETF on April 22, 2025 and sell it today you would earn a total of  1,034  from holding Ninepoint Bitcoin ETF or generate 58.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Accelerate Arbitrage  vs.  Ninepoint Bitcoin ETF

Accelerate Arbitrage

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Accelerate Arbitrage are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental drivers, Accelerate Arbitrage is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Ninepoint Bitcoin ETF

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Ninepoint Bitcoin ETF are ranked lower than 33 (%) 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.

Pair Trading with Accelerate Arbitrage and Ninepoint Bitcoin

The main advantage of trading using opposite Accelerate Arbitrage and Ninepoint Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelerate Arbitrage 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.

The idea behind Accelerate Arbitrage and Ninepoint Bitcoin ETF 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..