Correlation Between Copa Holdings and Joby Aviation
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and Joby Aviation 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 Joby Aviation 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 Joby Aviation, you can compare the effects of market volatilities on Copa Holdings and Joby Aviation 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 Joby Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and Joby Aviation.
Diversification Opportunities for Copa Holdings and Joby Aviation
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Copa and Joby is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and Joby Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joby Aviation 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 Joby Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joby Aviation has no effect on the direction of Copa Holdings i.e., Copa Holdings and Joby Aviation go up and down completely randomly.
Pair Corralation between Copa Holdings and Joby Aviation
Considering the 90-day investment horizon Copa Holdings SA is expected to under-perform the Joby Aviation. But the stock apears to be less risky and, when comparing its historical volatility, Copa Holdings SA is 4.58 times less risky than Joby Aviation. The stock trades about -0.01 of its potential returns per unit of risk. The Joby Aviation is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Joby Aviation on August 28, 2024 and sell it today you would lose (72.00) from holding Joby Aviation or give up 26.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copa Holdings SA vs. Joby Aviation
Performance |
| Timeline |
| Copa Holdings SA |
| Joby Aviation |
Copa Holdings and Joby Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and Joby Aviation
The main advantage of trading using opposite Copa Holdings and Joby Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, Joby Aviation 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 Joby Aviation will offset losses from the drop in Joby Aviation'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 |
| Joby Aviation vs. Copa Holdings SA | Joby Aviation vs. United Airlines Holdings | Joby Aviation vs. Delta Air Lines | Joby Aviation 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |