Correlation Between Mattel and GoPro

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

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

Diversification Opportunities for Mattel and GoPro

-0.69

Correlation Coefficient

Mattel  GoPro

Excellent diversification

The 3 months correlation between Mattel and GoPro is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and GoPro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoPro Inc and Mattel 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 Mattel Inc 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 Mattel i.e., Mattel and GoPro go up and down completely randomly.

Pair Corralation between Mattel and GoPro

Considering the 90-day investment horizon Mattel Inc is expected to under-perform the GoPro. But the stock apears to be less risky and, when comparing its historical volatility, Mattel Inc is 3.9 times less risky than GoPro. The stock trades about -0.09 of its potential returns per unit of risk. The GoPro Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  76.00  in GoPro Inc on June 28, 2025 and sell it today you would earn a total of  143.00  from holding GoPro Inc or generate 188.16% return on investment over 90 days.

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

Mattel Inc  vs.  GoPro Inc

Mattel Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Mattel Inc 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 October 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

GoPro Inc

Risk-Adjusted Performance

Solid

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

Pair Trading with Mattel and GoPro

The main advantage of trading using opposite Mattel and GoPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel 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 Mattel Inc 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.