Correlation Between Nano Dimension and GoPro
Can any of the company-specific risk be diversified away by investing in both Nano Dimension 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 Nano Dimension and GoPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Dimension and GoPro Inc, you can compare the effects of market volatilities on Nano Dimension 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 Nano Dimension with a short position of GoPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Dimension and GoPro.
Diversification Opportunities for Nano Dimension and GoPro
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nano and GoPro is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nano Dimension and GoPro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoPro Inc and Nano Dimension 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 Nano Dimension 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 Nano Dimension i.e., Nano Dimension and GoPro go up and down completely randomly.
Pair Corralation between Nano Dimension and GoPro
Given the investment horizon of 90 days Nano Dimension is expected to generate 4.97 times less return on investment than GoPro. But when comparing it to its historical volatility, Nano Dimension is 2.84 times less risky than GoPro. It trades about 0.09 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 97.00 in GoPro Inc on July 20, 2025 and sell it today you would earn a total of 104.00 from holding GoPro Inc or generate 107.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nano Dimension vs. GoPro Inc
Performance |
| Timeline |
| Nano Dimension |
| GoPro Inc |
Nano Dimension and GoPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano Dimension and GoPro
The main advantage of trading using opposite Nano Dimension and GoPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Dimension 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.| Nano Dimension vs. 3D Systems | Nano Dimension vs. Palladyne AI Corp | Nano Dimension vs. Microvision | Nano Dimension vs. Satellogic V |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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