Correlation Between Ninepoint Gold and Venture Minerals

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

Diversification Opportunities for Ninepoint Gold and Venture Minerals

-0.31

Correlation Coefficient

Ninepoint Gold  Venture Minerals

Very good diversification

The 3 months correlation between Ninepoint and Venture is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Gold and and Venture Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Venture Minerals 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 Venture Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Venture Minerals has no effect on the direction of Ninepoint Gold i.e., Ninepoint Gold and Venture Minerals go up and down completely randomly.

Pair Corralation between Ninepoint Gold and Venture Minerals

Assuming the 90 days trading horizon Ninepoint Gold is expected to generate 6.63 times less return on investment than Venture Minerals. But when comparing it to its historical volatility, Ninepoint Gold and is 11.98 times less risky than Venture Minerals. It trades about 0.12 of its potential returns per unit of risk. Venture Minerals Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1.30  in Venture Minerals Limited on September 12, 2025 and sell it today you would lose (1.22) from holding Venture Minerals Limited or give up 93.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Ninepoint Gold and  vs.  Venture Minerals Limited

Ninepoint Gold

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Ninepoint Gold and are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak basic indicators, Ninepoint Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Venture Minerals

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Venture Minerals Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Venture Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ninepoint Gold and Venture Minerals

The main advantage of trading using opposite Ninepoint Gold and Venture Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Gold position performs unexpectedly, Venture Minerals 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 Venture Minerals will offset losses from the drop in Venture Minerals' long position.

The idea behind Ninepoint Gold and and Venture Minerals Limited 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.