Correlation Between Porto Seguro and GoPro

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

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

Diversification Opportunities for Porto Seguro and GoPro

0.57

Correlation Coefficient

Porto Seguro  GoPro

Very weak diversification

The 3 months correlation between Porto and GoPro is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Porto Seguro SA and GoPro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoPro Inc and Porto Seguro 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 Porto Seguro SA 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 Porto Seguro i.e., Porto Seguro and GoPro go up and down completely randomly.

Pair Corralation between Porto Seguro and GoPro

Assuming the 90 days trading horizon Porto Seguro is expected to generate 4.75 times less return on investment than GoPro. But when comparing it to its historical volatility, Porto Seguro SA is 6.42 times less risky than GoPro. It trades about 0.22 of its potential returns per unit of risk. GoPro Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  352.00  in GoPro Inc on April 24, 2025 and sell it today you would earn a total of  408.00  from holding GoPro Inc or generate 115.91% return on investment over 90 days.

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

Porto Seguro SA  vs.  GoPro Inc

Porto Seguro SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Porto Seguro SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Porto Seguro unveiled solid returns over the last few months and may actually be approaching a breakup point.

GoPro Inc

Risk-Adjusted Performance

Good

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 90 days. Despite somewhat weak basic indicators, GoPro sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Porto Seguro and GoPro

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

The idea behind Porto Seguro SA and GoPro Inc 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.