Correlation Between Copa Holdings and PageGroup Plc
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and PageGroup Plc 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 Copa Holdings and PageGroup Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Copa Holdings SA and PageGroup plc, you can compare the effects of market volatilities on Copa Holdings and PageGroup Plc 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 Copa Holdings with a short position of PageGroup Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and PageGroup Plc.
Diversification Opportunities for Copa Holdings and PageGroup Plc
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Copa and PageGroup is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and PageGroup plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PageGroup plc and Copa Holdings 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 Copa Holdings SA are associated (or correlated) with PageGroup Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PageGroup plc has no effect on the direction of Copa Holdings i.e., Copa Holdings and PageGroup Plc go up and down completely randomly.
Pair Corralation between Copa Holdings and PageGroup Plc
Assuming the 90 days horizon Copa Holdings SA is expected to generate 1.13 times more return on investment than PageGroup Plc. However, Copa Holdings is 1.13 times more volatile than PageGroup plc. It trades about 0.02 of its potential returns per unit of risk. PageGroup plc is currently generating about -0.03 per unit of risk. If you would invest 8,692 in Copa Holdings SA on September 3, 2024 and sell it today you would earn a total of 258.00 from holding Copa Holdings SA or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copa Holdings SA vs. PageGroup plc
Performance |
| Timeline |
| Copa Holdings SA |
| PageGroup plc |
Copa Holdings and PageGroup Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and PageGroup Plc
The main advantage of trading using opposite Copa Holdings and PageGroup Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, PageGroup Plc 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 PageGroup Plc will offset losses from the drop in PageGroup Plc's long position.| Copa Holdings vs. Tower Semiconductor | Copa Holdings vs. PLAY2CHILL SA ZY | Copa Holdings vs. ON SEMICONDUCTOR | Copa Holdings vs. LG Display Co |
| PageGroup Plc vs. Games Workshop Group | PageGroup Plc vs. Scientific Games | PageGroup Plc vs. CI GAMES SA | PageGroup Plc vs. AEON STORES |
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 Stocks Directory module to find actively traded stocks across global markets.
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