Correlation Between Ninepoint Gold and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Ninepoint Gold and Fidelity Freedom 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 Fidelity Freedom 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 Fidelity Freedom Index, you can compare the effects of market volatilities on Ninepoint Gold and Fidelity Freedom 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 Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Gold and Fidelity Freedom.
Diversification Opportunities for Ninepoint Gold and Fidelity Freedom
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ninepoint and Fidelity is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Gold and and Fidelity Freedom Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Index 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 Fidelity Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom Index has no effect on the direction of Ninepoint Gold i.e., Ninepoint Gold and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Ninepoint Gold and Fidelity Freedom
Assuming the 90 days trading horizon Ninepoint Gold and is expected to generate 4.05 times more return on investment than Fidelity Freedom. However, Ninepoint Gold is 4.05 times more volatile than Fidelity Freedom Index. It trades about 0.14 of its potential returns per unit of risk. Fidelity Freedom Index is currently generating about 0.13 per unit of risk. If you would invest 2,495 in Ninepoint Gold and on September 3, 2025 and sell it today you would earn a total of 610.00 from holding Ninepoint Gold and or generate 24.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ninepoint Gold and vs. Fidelity Freedom Index
Performance |
| Timeline |
| Ninepoint Gold |
| Fidelity Freedom Index |
Ninepoint Gold and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Gold and Fidelity Freedom
The main advantage of trading using opposite Ninepoint Gold and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Gold position performs unexpectedly, Fidelity Freedom 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 Fidelity Freedom will offset losses from the drop in Fidelity Freedom'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 |
| Fidelity Freedom vs. Putnam Global Health | Fidelity Freedom vs. Alger Health Sciences | Fidelity Freedom vs. Live Oak Health | Fidelity Freedom vs. Invesco Global Health |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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