Correlation Between Ninepoint Gold and United Natural
Can any of the company-specific risk be diversified away by investing in both Ninepoint Gold and United Natural 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 United Natural 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 United Natural Foods, you can compare the effects of market volatilities on Ninepoint Gold and United Natural 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 United Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Gold and United Natural.
Diversification Opportunities for Ninepoint Gold and United Natural
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ninepoint and United is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Gold and and United Natural Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Natural Foods 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 United Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Natural Foods has no effect on the direction of Ninepoint Gold i.e., Ninepoint Gold and United Natural go up and down completely randomly.
Pair Corralation between Ninepoint Gold and United Natural
Assuming the 90 days trading horizon Ninepoint Gold and is expected to generate 0.7 times more return on investment than United Natural. However, Ninepoint Gold and is 1.43 times less risky than United Natural. It trades about 0.13 of its potential returns per unit of risk. United Natural Foods is currently generating about 0.08 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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Ninepoint Gold and vs. United Natural Foods
Performance |
| Timeline |
| Ninepoint Gold |
| United Natural Foods |
Ninepoint Gold and United Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Gold and United Natural
The main advantage of trading using opposite Ninepoint Gold and United Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Gold position performs unexpectedly, United Natural 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 United Natural will offset losses from the drop in United Natural'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 |
| United Natural vs. Richardson Electronics | United Natural vs. Treasury Wine Estates | United Natural vs. Nanjing Panda Electronics | United Natural vs. Nucletron Electronic Aktiengesellschaft |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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