Correlation Between Hercules Capital and Triplepoint Venture

Can any of the company-specific risk be diversified away by investing in both Hercules 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 Hercules 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 Hercules Capital and Triplepoint Venture Growth, you can compare the effects of market volatilities on Hercules 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 Hercules Capital with a short position of Triplepoint Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hercules Capital and Triplepoint Venture.

Diversification Opportunities for Hercules Capital and Triplepoint Venture

-0.44

Correlation Coefficient

Hercules Capital  Triplepoint Venture

Very good diversification

The 3 months correlation between Hercules and Triplepoint is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hercules 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 Hercules 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 Hercules 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 Hercules Capital i.e., Hercules Capital and Triplepoint Venture go up and down completely randomly.

Pair Corralation between Hercules Capital and Triplepoint Venture

Given the investment horizon of 90 days Hercules Capital is expected to generate 0.5 times more return on investment than Triplepoint Venture. However, Hercules Capital is 2.01 times less risky than Triplepoint Venture. It trades about 0.12 of its potential returns per unit of risk. Triplepoint Venture Growth is currently generating about -0.11 per unit of risk. If you would invest  1,790  in Hercules Capital on June 28, 2025 and sell it today you would earn a total of  120.00  from holding Hercules Capital or generate 6.7% return on investment over 90 days.

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

Hercules Capital  vs.  Triplepoint Venture Growth

Hercules Capital

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Hercules Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Hercules Capital may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Triplepoint Venture

Risk-Adjusted Performance

Weakest

Over the last 90 days Triplepoint Venture Growth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Hercules Capital and Triplepoint Venture

The main advantage of trading using opposite Hercules Capital and Triplepoint Venture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hercules 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 Hercules 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.