Correlation Between Hamilton Beach and GoPro

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

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Can any of the company-specific risk be diversified away by investing in both Hamilton Beach and GoPro at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Hamilton Beach and GoPro into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Hamilton Beach and GoPro

0.58
Correlation
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Very weak diversification

The 3 months correlation between Hamilton and GoPro is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Beach Brands Holding and GoPro Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on GoPro Inc and Hamilton Beach 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 Hamilton Beach Brands are associated (or correlated) with GoPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoPro Inc has no effect on the direction of Hamilton Beach i.e. Hamilton Beach and GoPro go up and down completely randomly.

Pair Corralation between Hamilton Beach and GoPro

Considering 30-days investment horizon, Hamilton Beach is expected to generate 15.89 times less return on investment than GoPro. In addition to that, Hamilton Beach is 1.12 times more volatile than GoPro Inc. It trades about 0.0 of its total potential returns per unit of risk. GoPro Inc is currently generating about 0.08 per unit of volatility. If you would invest  394.00  in GoPro Inc on May 2, 2020 and sell it today you would earn a total of  77.00  from holding GoPro Inc or generate 19.54% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Hamilton Beach Brands Holding   vs.  GoPro Inc

 Performance (%) 
      Timeline 
Hamilton Beach Brands 
00

Hamilton Beach Risk-Adjusted Performance

Over the last 30 days Hamilton Beach Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hamilton Beach is not utilizing all of its potentials. The new stock price disturbance, may contribute to short term losses for the investors.
GoPro Inc 
55

GoPro Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in GoPro Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Allthough quite weak forward indicators, GoPro disclosed solid returns over the last few months and may actually be approaching a breakup point.

Hamilton Beach and GoPro Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.


 
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