Correlation Between Turtle Beach and GoPro
Can any of the company-specific risk be diversified away by investing in both Turtle Beach 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 Turtle Beach and GoPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turtle Beach Corp and GoPro Inc, you can compare the effects of market volatilities on Turtle Beach 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 Turtle Beach with a short position of GoPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turtle Beach and GoPro.
Diversification Opportunities for Turtle Beach and GoPro
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turtle and GoPro is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Turtle Beach Corp and GoPro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoPro Inc and Turtle Beach 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 Turtle Beach Corp 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 Turtle Beach i.e., Turtle Beach and GoPro go up and down completely randomly.
Pair Corralation between Turtle Beach and GoPro
Given the investment horizon of 90 days Turtle Beach Corp is expected to generate 0.72 times more return on investment than GoPro. However, Turtle Beach Corp is 1.4 times less risky than GoPro. It trades about 0.0 of its potential returns per unit of risk. GoPro Inc is currently generating about -0.03 per unit of risk. If you would invest 1,627 in Turtle Beach Corp on August 24, 2024 and sell it today you would lose (115.00) from holding Turtle Beach Corp or give up 7.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turtle Beach Corp vs. GoPro Inc
Performance |
| Timeline |
| Turtle Beach Corp |
| GoPro Inc |
Turtle Beach and GoPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turtle Beach and GoPro
The main advantage of trading using opposite Turtle Beach and GoPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turtle Beach 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.| Turtle Beach vs. VOXX International | Turtle Beach vs. LG Display Co | Turtle Beach vs. Vizio Holding Corp | Turtle Beach vs. Emerson Radio |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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