Correlation Between Ninepoint Gold and Fidelity Freedom

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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 Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Ninepoint Gold and  vs.  Fidelity Freedom Index

 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 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of very unfluctuating basic indicators, Ninepoint Gold displayed solid returns over the last few months and may actually be approaching a breakup point.
Fidelity Freedom Index 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Freedom Index are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Fidelity Freedom is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.
The idea behind Ninepoint Gold and and Fidelity Freedom Index 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.

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