Correlation Between Gateway Mining and Nine Entertainment

Can any of the company-specific risk be diversified away by investing in both Gateway Mining and Nine Entertainment 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 Gateway Mining and Nine Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gateway Mining and Nine Entertainment Co, you can compare the effects of market volatilities on Gateway Mining and Nine Entertainment 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 Gateway Mining with a short position of Nine Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Mining and Nine Entertainment.

Diversification Opportunities for Gateway Mining and Nine Entertainment

-0.42

Correlation Coefficient

Gateway Mining  Nine Entertainment

Very good diversification

The 3 months correlation between Gateway and Nine is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Mining and Nine Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Entertainment and Gateway Mining 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 Gateway Mining are associated (or correlated) with Nine Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Entertainment has no effect on the direction of Gateway Mining i.e., Gateway Mining and Nine Entertainment go up and down completely randomly.

Pair Corralation between Gateway Mining and Nine Entertainment

Assuming the 90 days trading horizon Gateway Mining is expected to under-perform the Nine Entertainment. In addition to that, Gateway Mining is 3.26 times more volatile than Nine Entertainment Co. It trades about -0.05 of its total potential returns per unit of risk. Nine Entertainment Co is currently generating about 0.27 per unit of volatility. If you would invest  139.00  in Nine Entertainment Co on April 24, 2025 and sell it today you would earn a total of  33.00  from holding Nine Entertainment Co or generate 23.74% return on investment over 90 days.

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

Gateway Mining  vs.  Nine Entertainment Co

Gateway Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gateway Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Nine Entertainment

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nine Entertainment Co are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, Nine Entertainment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gateway Mining and Nine Entertainment

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

The idea behind Gateway Mining and Nine Entertainment Co 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.