Correlation Between GoPro and Hamilton Beach

By analyzing existing cross correlation between GoPro Inc and Hamilton Beach Brands, you can compare the effects of market volatilities on GoPro and Hamilton Beach 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 Hamilton Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoPro and Hamilton Beach.

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

Diversification Opportunities for GoPro and Hamilton Beach

0.05
  Correlation Coefficient
GoPro Inc
Hamilton Beach Brands

Significant diversification

The 3 months correlation between GoPro and Hamilton is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding GoPro Inc and Hamilton Beach Brands Holding in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Beach Brands 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 Hamilton Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Beach Brands has no effect on the direction of GoPro i.e. GoPro and Hamilton Beach go up and down completely randomly.

Pair Corralation between GoPro and Hamilton Beach

Given the investment horizon of 30 days, GoPro Inc is expected to generate 0.74 times more return on investment than Hamilton Beach. However, GoPro Inc is 1.36 times less risky than Hamilton Beach. It trades about 0.19 of its potential returns per unit of risk. Hamilton Beach Brands is currently generating about 0.03 per unit of risk. If you would invest  308.00  in GoPro Inc on June 13, 2020 and sell it today you would earn a total of  182.00  from holding GoPro Inc or generate 59.09% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

GoPro Inc  vs.  Hamilton Beach Brands Holding

 Performance (%) 
      Timeline 
GoPro Inc 
1212

GoPro Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in GoPro Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. Although quite weak forward indicators, GoPro disclosed solid returns over the last few months and may actually be approaching a breakup point.
Hamilton Beach Brands 
22

Hamilton Beach Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Beach Brands are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Hamilton Beach may actually be approaching a critical reversion point that can send shares even higher in August 2020.

GoPro and Hamilton Beach Volatility Contrast

 Predicted Return Density 
      Returns 
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