Correlation Between SAP SE and GoPro

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

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

Diversification Opportunities for SAP SE and GoPro

-0.76

Correlation Coefficient

SAP SE  GoPro

Pay attention - limited upside

The 3 months correlation between SAP and GoPro is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SAP SE and GoPro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoPro Inc and SAP SE 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 SAP SE 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 SAP SE i.e., SAP SE and GoPro go up and down completely randomly.

Pair Corralation between SAP SE and GoPro

Assuming the 90 days trading horizon SAP SE is expected to under-perform the GoPro. But the stock apears to be less risky and, when comparing its historical volatility, SAP SE is 5.38 times less risky than GoPro. The stock trades about -0.11 of its potential returns per unit of risk. The GoPro Inc is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  399.00  in GoPro Inc on July 4, 2025 and sell it today you would earn a total of  774.00  from holding GoPro Inc or generate 193.98% return on investment over 90 days.

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

SAP SE  vs.  GoPro Inc

SAP SE

Risk-Adjusted Performance

Weakest

Over the last 90 days SAP SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company 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. 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 SAP SE and GoPro

The main advantage of trading using opposite SAP SE and GoPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAP SE 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 SAP SE 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.