Correlation Between Winner Group and G Capital

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

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

Diversification Opportunities for Winner Group and G Capital

0.65

Correlation Coefficient

Winner Group  G Capital

Poor diversification

The 3 months correlation between Winner and GCAP is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Winner Group Enterprise and G Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Capital Public and Winner Group 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 Winner Group Enterprise are associated (or correlated) with G Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Capital Public has no effect on the direction of Winner Group i.e., Winner Group and G Capital go up and down completely randomly.

Pair Corralation between Winner Group and G Capital

Assuming the 90 days trading horizon Winner Group is expected to generate 2.39 times less return on investment than G Capital. But when comparing it to its historical volatility, Winner Group Enterprise is 5.3 times less risky than G Capital. It trades about 0.17 of its potential returns per unit of risk. G Capital Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  23.00  in G Capital Public on April 22, 2025 and sell it today you would earn a total of  4.00  from holding G Capital Public or generate 17.39% return on investment over 90 days.

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

Winner Group Enterprise  vs.  G Capital Public

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 13 (%) 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.

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 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, G Capital disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Winner Group and G Capital

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

The idea behind Winner Group Enterprise and G Capital Public 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.