Correlation Between Ninepoint Gold and DigiMax Global

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

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

Diversification Opportunities for Ninepoint Gold and DigiMax Global

-0.65

Correlation Coefficient

Ninepoint Gold  DigiMax Global

Excellent diversification

The 3 months correlation between Ninepoint and DigiMax is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Gold and and DigiMax Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiMax Global and Ninepoint Gold 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 Ninepoint Gold and are associated (or correlated) with DigiMax Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiMax Global has no effect on the direction of Ninepoint Gold i.e., Ninepoint Gold and DigiMax Global go up and down completely randomly.

Pair Corralation between Ninepoint Gold and DigiMax Global

Assuming the 90 days trading horizon Ninepoint Gold is expected to generate 17.73 times less return on investment than DigiMax Global. But when comparing it to its historical volatility, Ninepoint Gold and is 35.78 times less risky than DigiMax Global. It trades about 0.2 of its potential returns per unit of risk. DigiMax Global is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2.00  in DigiMax Global on September 7, 2025 and sell it today you would earn a total of  10.00  from holding DigiMax Global or generate 500.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	19.92%
Values	Daily Returns

Ninepoint Gold and  vs.  DigiMax Global

Ninepoint Gold

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Ninepoint Gold and are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of very unfluctuating basic indicators, Ninepoint Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

DigiMax Global

Risk-Adjusted Performance

Weakest

Over the last 90 days DigiMax Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Ninepoint Gold and DigiMax Global

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

The idea behind Ninepoint Gold and and DigiMax Global 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 Commodity Directory module to find actively traded commodities issued by global exchanges.