Correlation Between Copa Holdings and Fraser
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and Fraser 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 Fraser 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 Fraser and Neave, you can compare the effects of market volatilities on Copa Holdings and Fraser 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 Fraser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and Fraser.
Diversification Opportunities for Copa Holdings and Fraser
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Copa and Fraser is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and Fraser and Neave in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fraser and Neave 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 Fraser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fraser and Neave has no effect on the direction of Copa Holdings i.e., Copa Holdings and Fraser go up and down completely randomly.
Pair Corralation between Copa Holdings and Fraser
If you would invest 426.00 in Fraser and Neave on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Fraser and Neave or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Copa Holdings SA vs. Fraser and Neave
Performance |
| Timeline |
| Copa Holdings SA |
| Fraser and Neave |
Copa Holdings and Fraser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and Fraser
The main advantage of trading using opposite Copa Holdings and Fraser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, Fraser 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 Fraser will offset losses from the drop in Fraser's long position.| Copa Holdings vs. American Airlines Group | Copa Holdings vs. Southwest Airlines | Copa Holdings vs. United Airlines Holdings | Copa Holdings vs. Frontier Group Holdings |
| Fraser vs. ConAgra Foods | Fraser vs. McCormick Company Incorporated | Fraser vs. Campbell Soup | Fraser vs. Kellanova |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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