Correlation Between Blockchain Technologies and Ninepoint Web3

Can any of the company-specific risk be diversified away by investing in both Blockchain Technologies and Ninepoint Web3 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 Blockchain Technologies and Ninepoint Web3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blockchain Technologies ETF and Ninepoint Web3 Innovators, you can compare the effects of market volatilities on Blockchain Technologies and Ninepoint Web3 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 Blockchain Technologies with a short position of Ninepoint Web3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockchain Technologies and Ninepoint Web3.

Diversification Opportunities for Blockchain Technologies and Ninepoint Web3

0.96

Correlation Coefficient

Blockchain Technologies  Ninepoint Web3

Almost no diversification

The 3 months correlation between Blockchain and Ninepoint is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Technologies ETF and Ninepoint Web3 Innovators in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ninepoint Web3 Innovators and Blockchain Technologies 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 Blockchain Technologies ETF are associated (or correlated) with Ninepoint Web3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ninepoint Web3 Innovators has no effect on the direction of Blockchain Technologies i.e., Blockchain Technologies and Ninepoint Web3 go up and down completely randomly.

Pair Corralation between Blockchain Technologies and Ninepoint Web3

Assuming the 90 days trading horizon Blockchain Technologies is expected to generate 1.03 times less return on investment than Ninepoint Web3. In addition to that, Blockchain Technologies is 1.43 times more volatile than Ninepoint Web3 Innovators. It trades about 0.27 of its total potential returns per unit of risk. Ninepoint Web3 Innovators is currently generating about 0.4 per unit of volatility. If you would invest  1,763  in Ninepoint Web3 Innovators on April 22, 2025 and sell it today you would earn a total of  1,092  from holding Ninepoint Web3 Innovators or generate 61.94% return on investment over 90 days.

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

Blockchain Technologies ETF  vs.  Ninepoint Web3 Innovators

Blockchain Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blockchain Technologies ETF are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Blockchain Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Ninepoint Web3 Innovators

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Ninepoint Web3 Innovators are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Ninepoint Web3 displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blockchain Technologies and Ninepoint Web3

The main advantage of trading using opposite Blockchain Technologies and Ninepoint Web3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockchain Technologies position performs unexpectedly, Ninepoint Web3 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 Web3 will offset losses from the drop in Ninepoint Web3's long position.

The idea behind Blockchain Technologies ETF and Ninepoint Web3 Innovators 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..