Correlation Between Copa Holdings and GBLATL
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By analyzing existing cross correlation between Copa Holdings SA and GBLATL 1625 15 JAN 26, you can compare the effects of market volatilities on Copa Holdings and GBLATL 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 GBLATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and GBLATL.
Diversification Opportunities for Copa Holdings and GBLATL
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Copa and GBLATL is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and GBLATL 1625 15 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBLATL 1625 15 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 GBLATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBLATL 1625 15 has no effect on the direction of Copa Holdings i.e., Copa Holdings and GBLATL go up and down completely randomly.
Pair Corralation between Copa Holdings and GBLATL
Considering the 90-day investment horizon Copa Holdings SA is expected to generate 1.6 times more return on investment than GBLATL. However, Copa Holdings is 1.6 times more volatile than GBLATL 1625 15 JAN 26. It trades about -0.07 of its potential returns per unit of risk. GBLATL 1625 15 JAN 26 is currently generating about -0.28 per unit of risk. If you would invest 9,636 in Copa Holdings SA on September 4, 2024 and sell it today you would lose (542.00) from holding Copa Holdings SA or give up 5.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Copa Holdings SA vs. GBLATL 1625 15 JAN 26
Performance |
| Timeline |
| Copa Holdings SA |
| GBLATL 1625 15 |
Copa Holdings and GBLATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and GBLATL
The main advantage of trading using opposite Copa Holdings and GBLATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, GBLATL 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 GBLATL will offset losses from the drop in GBLATL's long position.| Copa Holdings vs. Delta Air Lines | Copa Holdings vs. United Airlines Holdings | Copa Holdings vs. Frontier Group Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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