Correlation Between Gladstone Capital and Triplepoint Venture

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

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

Diversification Opportunities for Gladstone Capital and Triplepoint Venture

0.9

Correlation Coefficient

Gladstone Capital  Triplepoint Venture

Almost no diversification

The 3 months correlation between Gladstone and Triplepoint is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Capital and Triplepoint Venture Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triplepoint Venture and Gladstone 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 Gladstone Capital are associated (or correlated) with Triplepoint Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triplepoint Venture has no effect on the direction of Gladstone Capital i.e., Gladstone Capital and Triplepoint Venture go up and down completely randomly.

Pair Corralation between Gladstone Capital and Triplepoint Venture

Given the investment horizon of 90 days Gladstone Capital is expected to generate 2.02 times less return on investment than Triplepoint Venture. But when comparing it to its historical volatility, Gladstone Capital is 1.88 times less risky than Triplepoint Venture. It trades about 0.15 of its potential returns per unit of risk. Triplepoint Venture Growth is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  568.00  in Triplepoint Venture Growth on May 4, 2025 and sell it today you would earn a total of  111.00  from holding Triplepoint Venture Growth or generate 19.54% return on investment over 90 days.

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

Gladstone Capital  vs.  Triplepoint Venture Growth

Gladstone Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gladstone Capital are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Gladstone Capital may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Triplepoint Venture

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Triplepoint Venture Growth are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Triplepoint Venture reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gladstone Capital and Triplepoint Venture

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

The idea behind Gladstone Capital and Triplepoint Venture Growth 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.