Correlation Between Copa Holdings and Abcellera Biologics
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and Abcellera Biologics 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 Abcellera Biologics 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 Abcellera Biologics, you can compare the effects of market volatilities on Copa Holdings and Abcellera Biologics 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 Abcellera Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and Abcellera Biologics.
Diversification Opportunities for Copa Holdings and Abcellera Biologics
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Copa and Abcellera is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and Abcellera Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcellera Biologics 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 Abcellera Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcellera Biologics has no effect on the direction of Copa Holdings i.e., Copa Holdings and Abcellera Biologics go up and down completely randomly.
Pair Corralation between Copa Holdings and Abcellera Biologics
Considering the 90-day investment horizon Copa Holdings is expected to generate 1.4 times less return on investment than Abcellera Biologics. But when comparing it to its historical volatility, Copa Holdings SA is 2.42 times less risky than Abcellera Biologics. It trades about 0.21 of its potential returns per unit of risk. Abcellera Biologics is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 297.00 in Abcellera Biologics on November 18, 2024 and sell it today you would earn a total of 30.00 from holding Abcellera Biologics or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copa Holdings SA vs. Abcellera Biologics
Performance |
| Timeline |
| Copa Holdings SA |
| Abcellera Biologics |
Copa Holdings and Abcellera Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and Abcellera Biologics
The main advantage of trading using opposite Copa Holdings and Abcellera Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, Abcellera Biologics 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 Abcellera Biologics will offset losses from the drop in Abcellera Biologics' long position.| Copa Holdings vs. SkyWest | Copa Holdings vs. Sun Country Airlines | Copa Holdings vs. Air Transport Services | Copa Holdings vs. Frontier Group Holdings |
| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV | Abcellera Biologics vs. Vir Biotechnology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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