Correlation Between G Capital and Winner Group

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

Diversification Opportunities for G Capital and Winner Group

0.36

Correlation Coefficient

G Capital  Winner Group

Weak diversification

The 3 months correlation between GCAP and Winner is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding G Capital Public and Winner Group Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Group Enterprise 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 Winner Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Group Enterprise has no effect on the direction of G Capital i.e., G Capital and Winner Group go up and down completely randomly.

Pair Corralation between G Capital and Winner Group

Assuming the 90 days trading horizon G Capital Public is expected to generate 5.42 times more return on investment than Winner Group. However, G Capital is 5.42 times more volatile than Winner Group Enterprise. It trades about 0.1 of its potential returns per unit of risk. Winner Group Enterprise is currently generating about 0.16 per unit of risk. If you would invest  21.00  in G Capital Public on April 21, 2025 and sell it today you would earn a total of  6.00  from holding G Capital Public or generate 28.57% return on investment over 90 days.

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

G Capital Public  vs.  Winner Group Enterprise

G Capital Public

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in G Capital Public are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, G Capital disclosed solid returns over the last few months and may actually be approaching a breakup point.

Winner Group Enterprise

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Winner Group Enterprise are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Winner Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with G Capital and Winner Group

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

The idea behind G Capital Public and Winner Group Enterprise 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.