Correlation Between Ninepoint Gold and Centerra Gold
Can any of the company-specific risk be diversified away by investing in both Ninepoint Gold and Centerra Gold 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 Centerra Gold 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 Centerra Gold, you can compare the effects of market volatilities on Ninepoint Gold and Centerra Gold 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 Centerra Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Gold and Centerra Gold.
Diversification Opportunities for Ninepoint Gold and Centerra Gold
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ninepoint and Centerra is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Gold and and Centerra Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centerra Gold 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 Centerra Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centerra Gold has no effect on the direction of Ninepoint Gold i.e., Ninepoint Gold and Centerra Gold go up and down completely randomly.
Pair Corralation between Ninepoint Gold and Centerra Gold
Assuming the 90 days trading horizon Ninepoint Gold is expected to generate 1.78 times less return on investment than Centerra Gold. But when comparing it to its historical volatility, Ninepoint Gold and is 1.08 times less risky than Centerra Gold. It trades about 0.16 of its potential returns per unit of risk. Centerra Gold is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 843.00 in Centerra Gold on September 2, 2025 and sell it today you would earn a total of 485.00 from holding Centerra Gold or generate 57.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ninepoint Gold and vs. Centerra Gold
Performance |
| Timeline |
| Ninepoint Gold |
| Centerra Gold |
Ninepoint Gold and Centerra Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Gold and Centerra Gold
The main advantage of trading using opposite Ninepoint Gold and Centerra Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Gold position performs unexpectedly, Centerra Gold 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 Centerra Gold will offset losses from the drop in Centerra Gold's long position.| Ninepoint Gold vs. Fidelity Tactical High | Ninepoint Gold vs. 0P000075GQ | Ninepoint Gold vs. Mawer New Canada | Ninepoint Gold vs. Canoe Defensive International |
| Centerra Gold vs. iShares Physical Metals | Centerra Gold vs. Yooma Wellness | Centerra Gold vs. National Healthcare Logistics | Centerra Gold vs. Avecho Biotechnology Limited |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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