Correlation Between GoPro and WildBrain
Can any of the company-specific risk be diversified away by investing in both GoPro and WildBrain 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 GoPro and WildBrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoPro Inc and WildBrain, you can compare the effects of market volatilities on GoPro and WildBrain 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 GoPro with a short position of WildBrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoPro and WildBrain.
Diversification Opportunities for GoPro and WildBrain
Pay attention - limited upside
The 3 months correlation between GoPro and WildBrain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GoPro Inc and WildBrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WildBrain and GoPro 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 GoPro Inc are associated (or correlated) with WildBrain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WildBrain has no effect on the direction of GoPro i.e., GoPro and WildBrain go up and down completely randomly.
Pair Corralation between GoPro and WildBrain
If you would invest (100.00) in WildBrain on January 20, 2024 and sell it today you would earn a total of 100.00 from holding WildBrain or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
GoPro Inc vs. WildBrain
Performance |
| Timeline |
| GoPro Inc |
| WildBrain |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GoPro and WildBrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoPro and WildBrain
The main advantage of trading using opposite GoPro and WildBrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoPro position performs unexpectedly, WildBrain 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 WildBrain will offset losses from the drop in WildBrain's long position.| GoPro vs. LG Display Co | GoPro vs. The Singing Machine | GoPro vs. Wearable Devices | GoPro vs. Zepp Health Corp |
| WildBrain vs. Usio Inc | WildBrain vs. SunOpta | WildBrain vs. Asure Software | WildBrain vs. Arrow Electronics |
Check out your portfolio center.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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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