Correlation Between Copa Holdings and Atco Mining
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and Atco Mining 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 Atco Mining 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 Atco Mining, you can compare the effects of market volatilities on Copa Holdings and Atco Mining 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 Atco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and Atco Mining.
Diversification Opportunities for Copa Holdings and Atco Mining
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Copa and Atco is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and Atco Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atco Mining 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 Atco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atco Mining has no effect on the direction of Copa Holdings i.e., Copa Holdings and Atco Mining go up and down completely randomly.
Pair Corralation between Copa Holdings and Atco Mining
Considering the 90-day investment horizon Copa Holdings SA is expected to under-perform the Atco Mining. But the stock apears to be less risky and, when comparing its historical volatility, Copa Holdings SA is 8.92 times less risky than Atco Mining. The stock trades about 0.0 of its potential returns per unit of risk. The Atco Mining is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2.25 in Atco Mining on August 29, 2024 and sell it today you would lose (0.98) from holding Atco Mining or give up 43.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copa Holdings SA vs. Atco Mining
Performance |
| Timeline |
| Copa Holdings SA |
| Atco Mining |
Copa Holdings and Atco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and Atco Mining
The main advantage of trading using opposite Copa Holdings and Atco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, Atco Mining 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 Atco Mining will offset losses from the drop in Atco Mining's long position.| Copa Holdings vs. SkyWest | Copa Holdings vs. Sun Country Airlines | Copa Holdings vs. Air Transport Services | Copa Holdings vs. Frontier Group Holdings |
| Atco Mining vs. Copa Holdings SA | Atco Mining vs. United Airlines Holdings | Atco Mining vs. Delta Air Lines | Atco Mining vs. SkyWest |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |