Correlation Between Ninepoint Gold and Canfor Pulp
Can any of the company-specific risk be diversified away by investing in both Ninepoint Gold and Canfor Pulp 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 Canfor Pulp 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 Canfor Pulp Products, you can compare the effects of market volatilities on Ninepoint Gold and Canfor Pulp 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 Canfor Pulp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Gold and Canfor Pulp.
Diversification Opportunities for Ninepoint Gold and Canfor Pulp
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ninepoint and Canfor is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Gold and and Canfor Pulp Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canfor Pulp Products 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 Canfor Pulp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canfor Pulp Products has no effect on the direction of Ninepoint Gold i.e., Ninepoint Gold and Canfor Pulp go up and down completely randomly.
Pair Corralation between Ninepoint Gold and Canfor Pulp
Assuming the 90 days trading horizon Ninepoint Gold and is expected to generate 0.59 times more return on investment than Canfor Pulp. However, Ninepoint Gold and is 1.7 times less risky than Canfor Pulp. It trades about 0.15 of its potential returns per unit of risk. Canfor Pulp Products is currently generating about -0.14 per unit of risk. If you would invest 2,253 in Ninepoint Gold and on August 25, 2025 and sell it today you would earn a total of 586.00 from holding Ninepoint Gold and or generate 26.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ninepoint Gold and vs. Canfor Pulp Products
Performance |
| Timeline |
| Ninepoint Gold |
| Canfor Pulp Products |
Ninepoint Gold and Canfor Pulp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Gold and Canfor Pulp
The main advantage of trading using opposite Ninepoint Gold and Canfor Pulp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Gold position performs unexpectedly, Canfor Pulp 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 Canfor Pulp will offset losses from the drop in Canfor Pulp's long position.| Ninepoint Gold vs. 0P000075GQ | Ninepoint Gold vs. Symphony Floating Rate | Ninepoint Gold vs. PICTON Credit Opportunities | Ninepoint Gold vs. Citadel Income |
| Canfor Pulp vs. Wealth Minerals | Canfor Pulp vs. Star Royalties | Canfor Pulp vs. Electra Battery Materials | Canfor Pulp vs. CHARBONE Hydrogen |
Check out your portfolio center.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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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