Correlation Between Copa Holdings and Advanced Health
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and Advanced Health 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 Advanced Health 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 Advanced Health Intelligence, you can compare the effects of market volatilities on Copa Holdings and Advanced Health 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 Advanced Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and Advanced Health.
Diversification Opportunities for Copa Holdings and Advanced Health
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Copa and Advanced is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and Advanced Health Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Health Inte 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 Advanced Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Health Inte has no effect on the direction of Copa Holdings i.e., Copa Holdings and Advanced Health go up and down completely randomly.
Pair Corralation between Copa Holdings and Advanced Health
Considering the 90-day investment horizon Copa Holdings is expected to generate 420.91 times less return on investment than Advanced Health. But when comparing it to its historical volatility, Copa Holdings SA is 53.25 times less risky than Advanced Health. It trades about 0.01 of its potential returns per unit of risk. Advanced Health Intelligence is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Advanced Health Intelligence on October 13, 2024 and sell it today you would lose (4.60) from holding Advanced Health Intelligence or give up 92.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.13% |
| Values | Daily Returns |
Copa Holdings SA vs. Advanced Health Intelligence
Performance |
| Timeline |
| Copa Holdings SA |
| Advanced Health Inte |
Copa Holdings and Advanced Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and Advanced Health
The main advantage of trading using opposite Copa Holdings and Advanced Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, Advanced Health 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 Advanced Health will offset losses from the drop in Advanced Health'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 |
| Advanced Health vs. Southwest Airlines | Advanced Health vs. Franklin Wireless Corp | Advanced Health vs. Copa Holdings SA | Advanced Health vs. Toro Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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