Correlation Between Copa Holdings and First Ship
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and First Ship 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 First Ship 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 First Ship Lease, you can compare the effects of market volatilities on Copa Holdings and First Ship 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 First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and First Ship.
Diversification Opportunities for Copa Holdings and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Copa and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease 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 First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of Copa Holdings i.e., Copa Holdings and First Ship go up and down completely randomly.
Pair Corralation between Copa Holdings and First Ship
If you would invest 4.00 in First Ship Lease on August 31, 2024 and sell it today you would earn a total of 0.00 from holding First Ship Lease or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copa Holdings SA vs. First Ship Lease
Performance |
| Timeline |
| Copa Holdings SA |
| First Ship Lease |
Copa Holdings and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and First Ship
The main advantage of trading using opposite Copa Holdings and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship's long position.| Copa Holdings vs. JetBlue Airways Corp | Copa Holdings vs. Allegiant Travel | Copa Holdings vs. SkyWest | Copa Holdings vs. Air Transport Services |
| First Ship vs. United Rentals | First Ship vs. Ashtead Gro | First Ship vs. Ashtead Group plc | First Ship vs. AerCap Holdings NV |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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