Correlation Between Copa Holdings and Keurig Dr
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and Keurig Dr 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 Keurig Dr 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 Keurig Dr Pepper, you can compare the effects of market volatilities on Copa Holdings and Keurig Dr 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 Keurig Dr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and Keurig Dr.
Diversification Opportunities for Copa Holdings and Keurig Dr
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Copa and Keurig is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and Keurig Dr Pepper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keurig Dr Pepper 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 Keurig Dr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keurig Dr Pepper has no effect on the direction of Copa Holdings i.e., Copa Holdings and Keurig Dr go up and down completely randomly.
Pair Corralation between Copa Holdings and Keurig Dr
Considering the 90-day investment horizon Copa Holdings SA is expected to under-perform the Keurig Dr. In addition to that, Copa Holdings is 2.13 times more volatile than Keurig Dr Pepper. It trades about -0.14 of its total potential returns per unit of risk. Keurig Dr Pepper is currently generating about 0.03 per unit of volatility. If you would invest 3,356 in Keurig Dr Pepper on September 14, 2024 and sell it today you would earn a total of 25.00 from holding Keurig Dr Pepper or generate 0.74% 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. Keurig Dr Pepper
Performance |
| Timeline |
| Copa Holdings SA |
| Keurig Dr Pepper |
Copa Holdings and Keurig Dr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and Keurig Dr
The main advantage of trading using opposite Copa Holdings and Keurig Dr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, Keurig Dr 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 Keurig Dr will offset losses from the drop in Keurig Dr'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 |
| Keurig Dr vs. Coca Cola Femsa SAB | Keurig Dr vs. Embotelladora Andina SA | Keurig Dr vs. Coca Cola European Partners | Keurig Dr vs. Coca Cola Consolidated |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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