Correlation Between Ninepoint Gold and Dimensional 2045

Can any of the company-specific risk be diversified away by investing in both Ninepoint Gold and Dimensional 2045 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 Dimensional 2045 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 Dimensional 2045 Target, you can compare the effects of market volatilities on Ninepoint Gold and Dimensional 2045 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 Dimensional 2045. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Gold and Dimensional 2045.

Diversification Opportunities for Ninepoint Gold and Dimensional 2045

0.56

Correlation Coefficient

Ninepoint Gold  Dimensional 2045

Very weak diversification

The 3 months correlation between Ninepoint and Dimensional is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Gold and and Dimensional 2045 Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional 2045 Target 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 Dimensional 2045. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional 2045 Target has no effect on the direction of Ninepoint Gold i.e., Ninepoint Gold and Dimensional 2045 go up and down completely randomly.

Pair Corralation between Ninepoint Gold and Dimensional 2045

Assuming the 90 days trading horizon Ninepoint Gold and is expected to generate 5.07 times more return on investment than Dimensional 2045. However, Ninepoint Gold is 5.07 times more volatile than Dimensional 2045 Target. It trades about 0.17 of its potential returns per unit of risk. Dimensional 2045 Target is currently generating about 0.08 per unit of risk. If you would invest  2,248  in Ninepoint Gold and on August 26, 2025 and sell it today you would earn a total of  673.00  from holding Ninepoint Gold and or generate 29.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Ninepoint Gold and  vs.  Dimensional 2045 Target

Ninepoint Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ninepoint Gold and are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak basic indicators, Ninepoint Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Dimensional 2045 Target

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Dimensional 2045 Target are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Dimensional 2045 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ninepoint Gold and Dimensional 2045

The main advantage of trading using opposite Ninepoint Gold and Dimensional 2045 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Gold position performs unexpectedly, Dimensional 2045 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 Dimensional 2045 will offset losses from the drop in Dimensional 2045's long position.

The idea behind Ninepoint Gold and and Dimensional 2045 Target 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.