Correlation Between G Capital and Ticon Freehold

Can any of the company-specific risk be diversified away by investing in both G Capital and Ticon Freehold 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 G Capital and Ticon Freehold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between G Capital Public and Ticon Freehold and, you can compare the effects of market volatilities on G Capital and Ticon Freehold 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 G Capital with a short position of Ticon Freehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Capital and Ticon Freehold.

Diversification Opportunities for G Capital and Ticon Freehold

0.47

Correlation Coefficient

G Capital  Ticon Freehold

Very weak diversification

The 3 months correlation between GCAP and Ticon is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding G Capital Public and Ticon Freehold and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ticon Freehold and G Capital 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 G Capital Public are associated (or correlated) with Ticon Freehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ticon Freehold has no effect on the direction of G Capital i.e., G Capital and Ticon Freehold go up and down completely randomly.

Pair Corralation between G Capital and Ticon Freehold

Assuming the 90 days trading horizon G Capital Public is expected to generate 2.27 times more return on investment than Ticon Freehold. However, G Capital is 2.27 times more volatile than Ticon Freehold and. It trades about 0.05 of its potential returns per unit of risk. Ticon Freehold and is currently generating about 0.09 per unit of risk. If you would invest  28.00  in G Capital Public on April 25, 2025 and sell it today you would earn a total of  2.00  from holding G Capital Public or generate 7.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

G Capital Public  vs.  Ticon Freehold and

G Capital Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in G Capital Public are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, G Capital may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Ticon Freehold

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ticon Freehold and are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ticon Freehold may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with G Capital and Ticon Freehold

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

The idea behind G Capital Public and Ticon Freehold and 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.