Correlation Between Copa Holdings and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and ManpowerGroup 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 ManpowerGroup 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 ManpowerGroup, you can compare the effects of market volatilities on Copa Holdings and ManpowerGroup 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 ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and ManpowerGroup.
Diversification Opportunities for Copa Holdings and ManpowerGroup
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Copa and ManpowerGroup is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup 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 ManpowerGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManpowerGroup has no effect on the direction of Copa Holdings i.e., Copa Holdings and ManpowerGroup go up and down completely randomly.
Pair Corralation between Copa Holdings and ManpowerGroup
Assuming the 90 days horizon Copa Holdings SA is expected to under-perform the ManpowerGroup. In addition to that, Copa Holdings is 2.01 times more volatile than ManpowerGroup. It trades about -0.03 of its total potential returns per unit of risk. ManpowerGroup is currently generating about 0.19 per unit of volatility. If you would invest 5,750 in ManpowerGroup on September 2, 2024 and sell it today you would earn a total of 350.00 from holding ManpowerGroup or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copa Holdings SA vs. ManpowerGroup
Performance |
| Timeline |
| Copa Holdings SA |
| ManpowerGroup |
Copa Holdings and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and ManpowerGroup
The main advantage of trading using opposite Copa Holdings and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, ManpowerGroup 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 ManpowerGroup will offset losses from the drop in ManpowerGroup's long position.| Copa Holdings vs. SBA Communications Corp | Copa Holdings vs. Casio Computer CoLtd | Copa Holdings vs. INTERSHOP Communications Aktiengesellschaft | Copa Holdings vs. Internet Thailand PCL |
| ManpowerGroup vs. CDN IMPERIAL BANK | ManpowerGroup vs. Webster Financial | ManpowerGroup vs. JSC Halyk bank | ManpowerGroup vs. Regions Financial |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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