Correlation Between Ninepoint Gold and UMH Properties

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

Diversification Opportunities for Ninepoint Gold and UMH Properties

-0.51
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Ninepoint and UMH is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Gold and and UMH Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UMH Properties 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 UMH Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UMH Properties has no effect on the direction of Ninepoint Gold i.e., Ninepoint Gold and UMH Properties go up and down completely randomly.

Pair Corralation between Ninepoint Gold and UMH Properties

Assuming the 90 days trading horizon Ninepoint Gold and is expected to generate 5.0 times more return on investment than UMH Properties. However, Ninepoint Gold is 5.0 times more volatile than UMH Properties. It trades about 0.13 of its potential returns per unit of risk. UMH Properties is currently generating about -0.1 per unit of risk. If you would invest  2,527  in Ninepoint Gold and on September 7, 2025 and sell it today you would earn a total of  564.00  from holding Ninepoint Gold and or generate 22.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

Ninepoint Gold and  vs.  UMH Properties

 Performance 
       Timeline  
Ninepoint Gold 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ninepoint Gold and are ranked lower than 10 (%) 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.
UMH Properties 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days UMH Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, UMH Properties is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Ninepoint Gold and UMH Properties Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ninepoint Gold and UMH Properties

The main advantage of trading using opposite Ninepoint Gold and UMH Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Gold position performs unexpectedly, UMH Properties 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 UMH Properties will offset losses from the drop in UMH Properties' long position.
The idea behind Ninepoint Gold and and UMH Properties 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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