Correlation Between BetaPro Equal and Ninepoint Energy

Can any of the company-specific risk be diversified away by investing in both BetaPro Equal 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 Equal 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 Equal Weight and Ninepoint Energy, you can compare the effects of market volatilities on BetaPro Equal 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 Equal with a short position of Ninepoint Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro Equal and Ninepoint Energy.

Diversification Opportunities for BetaPro Equal and Ninepoint Energy

0.75

Correlation Coefficient

BetaPro Equal  Ninepoint Energy

Poor diversification

The 3 months correlation between BetaPro and Ninepoint is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro Equal Weight and Ninepoint Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ninepoint Energy and BetaPro Equal 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 Equal Weight 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 Equal i.e., BetaPro Equal and Ninepoint Energy go up and down completely randomly.

Pair Corralation between BetaPro Equal and Ninepoint Energy

Assuming the 90 days trading horizon BetaPro Equal Weight is expected to generate 1.06 times more return on investment than Ninepoint Energy. However, BetaPro Equal is 1.06 times more volatile than Ninepoint Energy. It trades about 0.39 of its potential returns per unit of risk. Ninepoint Energy is currently generating about 0.1 per unit of risk. If you would invest  2,596  in BetaPro Equal Weight on April 25, 2025 and sell it today you would earn a total of  983.00  from holding BetaPro Equal Weight or generate 37.87% return on investment over 90 days.

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

BetaPro Equal Weight  vs.  Ninepoint Energy

BetaPro Equal Weight

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in BetaPro Equal Weight are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, BetaPro Equal displayed solid returns over the last few months and may actually be approaching a breakup point.

Ninepoint Energy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ninepoint Energy are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Ninepoint Energy may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with BetaPro Equal and Ninepoint Energy

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

The idea behind BetaPro Equal Weight and Ninepoint Energy 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.