Correlation Between Ninepoint Gold and Astor Long/short

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

Diversification Opportunities for Ninepoint Gold and Astor Long/short

0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ninepoint and Astor is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Gold and and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short 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 Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Ninepoint Gold i.e., Ninepoint Gold and Astor Long/short go up and down completely randomly.

Pair Corralation between Ninepoint Gold and Astor Long/short

Assuming the 90 days trading horizon Ninepoint Gold and is expected to generate 6.68 times more return on investment than Astor Long/short. However, Ninepoint Gold is 6.68 times more volatile than Astor Longshort Fund. It trades about 0.16 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.12 per unit of risk. If you would invest  2,424  in Ninepoint Gold and on August 31, 2025 and sell it today you would earn a total of  691.00  from holding Ninepoint Gold and or generate 28.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ninepoint Gold and  vs.  Astor Longshort Fund

 Performance 
       Timeline  
Ninepoint Gold 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ninepoint Gold and are ranked lower than 12 (%) 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.
Astor Long/short 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Astor Longshort Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Astor Long/short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ninepoint Gold and Astor Long/short Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ninepoint Gold and Astor Long/short

The main advantage of trading using opposite Ninepoint Gold and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Gold position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.
The idea behind Ninepoint Gold and and Astor Longshort Fund 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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