Correlation Between BetaPro SPTSX and NVIDIA Yield

Can any of the company-specific risk be diversified away by investing in both BetaPro SPTSX and NVIDIA Yield 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 SPTSX and NVIDIA Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BetaPro SPTSX 60 and NVIDIA Yield Shares, you can compare the effects of market volatilities on BetaPro SPTSX and NVIDIA Yield 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 SPTSX with a short position of NVIDIA Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SPTSX and NVIDIA Yield.

Diversification Opportunities for BetaPro SPTSX and NVIDIA Yield

-0.96

Correlation Coefficient

BetaPro SPTSX  NVIDIA Yield

Pay attention - limited upside

The 3 months correlation between BetaPro and NVIDIA is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SPTSX 60 and NVIDIA Yield Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NVIDIA Yield Shares and BetaPro SPTSX 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 SPTSX 60 are associated (or correlated) with NVIDIA Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NVIDIA Yield Shares has no effect on the direction of BetaPro SPTSX i.e., BetaPro SPTSX and NVIDIA Yield go up and down completely randomly.

Pair Corralation between BetaPro SPTSX and NVIDIA Yield

Assuming the 90 days trading horizon BetaPro SPTSX 60 is expected to under-perform the NVIDIA Yield. But the etf apears to be less risky and, when comparing its historical volatility, BetaPro SPTSX 60 is 2.05 times less risky than NVIDIA Yield. The etf trades about -0.34 of its potential returns per unit of risk. The NVIDIA Yield Shares is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest  2,667  in NVIDIA Yield Shares on April 24, 2025 and sell it today you would earn a total of  1,532  from holding NVIDIA Yield Shares or generate 57.44% return on investment over 90 days.

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

BetaPro SPTSX 60  vs.  NVIDIA Yield Shares

BetaPro SPTSX 60

Risk-Adjusted Performance

Very Weak

Over the last 90 days BetaPro SPTSX 60 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 fundamental indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

NVIDIA Yield Shares

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in NVIDIA Yield Shares are ranked lower than 33 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, NVIDIA Yield exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BetaPro SPTSX and NVIDIA Yield

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

The idea behind BetaPro SPTSX 60 and NVIDIA Yield Shares 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 CEOs Directory module to screen CEOs from public companies around the world.