Correlation Between Singing Machine and GoPro
Can any of the company-specific risk be diversified away by investing in both Singing Machine 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 Singing Machine and GoPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Singing Machine and GoPro Inc, you can compare the effects of market volatilities on Singing Machine 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 Singing Machine with a short position of GoPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singing Machine and GoPro.
Diversification Opportunities for Singing Machine and GoPro
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singing and GoPro is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding The Singing Machine and GoPro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoPro Inc and Singing Machine 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 The Singing Machine 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 Singing Machine i.e., Singing Machine and GoPro go up and down completely randomly.
Pair Corralation between Singing Machine and GoPro
Given the investment horizon of 90 days The Singing Machine is expected to generate 3.0 times more return on investment than GoPro. However, Singing Machine is 3.0 times more volatile than GoPro Inc. It trades about 0.12 of its potential returns per unit of risk. GoPro Inc is currently generating about -0.47 per unit of risk. If you would invest 88.00 in The Singing Machine on January 30, 2024 and sell it today you would earn a total of 13.00 from holding The Singing Machine or generate 14.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Singing Machine vs. GoPro Inc
Performance |
Timeline |
Singing Machine |
GoPro Inc |
Singing Machine and GoPro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Singing Machine and GoPro
The main advantage of trading using opposite Singing Machine and GoPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singing Machine 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.Singing Machine vs. Universal Electronics | Singing Machine vs. VOXX International | Singing Machine vs. Sharp | Singing Machine vs. TCL Electronics Holdings |
GoPro vs. Sony Group Corp | GoPro vs. LG Display Co | GoPro vs. Vizio Holding Corp | GoPro vs. Universal 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |