Correlation Between Triplepoint Venture and FinVolution

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

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

Diversification Opportunities for Triplepoint Venture and FinVolution

0.77

Correlation Coefficient

Triplepoint Venture  FinVolution

Poor diversification

The 3 months correlation between Triplepoint and FinVolution is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Triplepoint Venture Growth and FinVolution Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FinVolution Group and Triplepoint Venture 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 Triplepoint Venture Growth are associated (or correlated) with FinVolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FinVolution Group has no effect on the direction of Triplepoint Venture i.e., Triplepoint Venture and FinVolution go up and down completely randomly.

Pair Corralation between Triplepoint Venture and FinVolution

Given the investment horizon of 90 days Triplepoint Venture Growth is expected to generate 0.81 times more return on investment than FinVolution. However, Triplepoint Venture Growth is 1.23 times less risky than FinVolution. It trades about 0.16 of its potential returns per unit of risk. FinVolution Group is currently generating about 0.07 per unit of risk. If you would invest  576.00  in Triplepoint Venture Growth on May 1, 2025 and sell it today you would earn a total of  113.00  from holding Triplepoint Venture Growth or generate 19.62% return on investment over 90 days.

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

Triplepoint Venture Growth  vs.  FinVolution Group

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.

FinVolution Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FinVolution Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, FinVolution may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Triplepoint Venture and FinVolution

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

The idea behind Triplepoint Venture Growth and FinVolution Group 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.