Correlation Between GoPro and Caixa Seguridade

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

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

Diversification Opportunities for GoPro and Caixa Seguridade

-0.7

Correlation Coefficient

GoPro  Caixa Seguridade

Excellent diversification

The 3 months correlation between GoPro and Caixa is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding GoPro Inc and Caixa Seguridade Participaes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixa Seguridade Par 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 Caixa Seguridade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixa Seguridade Par has no effect on the direction of GoPro i.e., GoPro and Caixa Seguridade go up and down completely randomly.

Pair Corralation between GoPro and Caixa Seguridade

Assuming the 90 days trading horizon GoPro Inc is expected to generate 8.19 times more return on investment than Caixa Seguridade. However, GoPro is 8.19 times more volatile than Caixa Seguridade Participaes. It trades about 0.18 of its potential returns per unit of risk. Caixa Seguridade Participaes is currently generating about -0.2 per unit of risk. If you would invest  354.00  in GoPro Inc on April 25, 2025 and sell it today you would earn a total of  519.00  from holding GoPro Inc or generate 146.61% return on investment over 90 days.

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

GoPro Inc  vs.  Caixa Seguridade Participaes

GoPro Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GoPro Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, GoPro sustained solid returns over the last few months and may actually be approaching a breakup point.

Caixa Seguridade Par

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caixa Seguridade Participaes has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with GoPro and Caixa Seguridade

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

The idea behind GoPro Inc and Caixa Seguridade Participaes 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.