Correlation Between Ninepoint Gold and BMO Balanced
Can any of the company-specific risk be diversified away by investing in both Ninepoint Gold and BMO Balanced 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 BMO Balanced 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 BMO Balanced ETF, you can compare the effects of market volatilities on Ninepoint Gold and BMO Balanced 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 BMO Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Gold and BMO Balanced.
Diversification Opportunities for Ninepoint Gold and BMO Balanced
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ninepoint and BMO is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Gold and and BMO Balanced ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO Balanced ETF 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 BMO Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO Balanced ETF has no effect on the direction of Ninepoint Gold i.e., Ninepoint Gold and BMO Balanced go up and down completely randomly.
Pair Corralation between Ninepoint Gold and BMO Balanced
Assuming the 90 days trading horizon Ninepoint Gold and is expected to generate 5.42 times more return on investment than BMO Balanced. However, Ninepoint Gold is 5.42 times more volatile than BMO Balanced ETF. It trades about 0.14 of its potential returns per unit of risk. BMO Balanced ETF is currently generating about 0.14 per unit of risk. If you would invest 2,527 in Ninepoint Gold and on September 6, 2025 and sell it today you would earn a total of 624.00 from holding Ninepoint Gold and or generate 24.69% 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. BMO Balanced ETF
Performance |
| Timeline |
| Ninepoint Gold |
| BMO Balanced ETF |
Ninepoint Gold and BMO Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ninepoint Gold and BMO Balanced
The main advantage of trading using opposite Ninepoint Gold and BMO Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Gold position performs unexpectedly, BMO Balanced 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 BMO Balanced will offset losses from the drop in BMO Balanced's long position.| Ninepoint Gold vs. CI Global Health | Ninepoint Gold vs. Sustainable Innovation Health | Ninepoint Gold vs. Global Healthcare Income |
| BMO Balanced vs. iShares SPTSX 60 | BMO Balanced vs. iShares Core SP | BMO Balanced vs. iShares Core SPTSX | BMO Balanced vs. BMO Aggregate Bond |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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