Correlation Between Princeton Capital and Equus Total

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

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

Diversification Opportunities for Princeton Capital and Equus Total

-0.76

Correlation Coefficient

Princeton Capital  Equus Total

Pay attention - limited upside

The 3 months correlation between Princeton and Equus is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Princeton Capital and Equus Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equus Total Return and Princeton 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 Princeton Capital are associated (or correlated) with Equus Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equus Total Return has no effect on the direction of Princeton Capital i.e., Princeton Capital and Equus Total go up and down completely randomly.

Pair Corralation between Princeton Capital and Equus Total

Given the investment horizon of 90 days Princeton Capital is expected to under-perform the Equus Total. In addition to that, Princeton Capital is 1.65 times more volatile than Equus Total Return. It trades about -0.16 of its total potential returns per unit of risk. Equus Total Return is currently generating about 0.38 per unit of volatility. If you would invest  100.00  in Equus Total Return on May 28, 2025 and sell it today you would earn a total of  101.00  from holding Equus Total Return or generate 101.0% return on investment over 90 days.

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

Princeton Capital  vs.  Equus Total Return

Princeton Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days Princeton Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Equus Total Return

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Equus Total Return are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Equus Total unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Princeton Capital and Equus Total

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

The idea behind Princeton Capital and Equus Total Return 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .