Correlation Between Copa Holdings and LLOYDS

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and LLOYDS 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 LLOYDS 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 LLOYDS BKG GROUP, you can compare the effects of market volatilities on Copa Holdings and LLOYDS 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 LLOYDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and LLOYDS.

Diversification Opportunities for Copa Holdings and LLOYDS

-0.1
  Correlation Coefficient

Good diversification

The 3 months correlation between Copa and LLOYDS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and LLOYDS BKG GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LLOYDS BKG GROUP 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 LLOYDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LLOYDS BKG GROUP has no effect on the direction of Copa Holdings i.e., Copa Holdings and LLOYDS go up and down completely randomly.

Pair Corralation between Copa Holdings and LLOYDS

Considering the 90-day investment horizon Copa Holdings SA is expected to generate 4.38 times more return on investment than LLOYDS. However, Copa Holdings is 4.38 times more volatile than LLOYDS BKG GROUP. It trades about -0.03 of its potential returns per unit of risk. LLOYDS BKG GROUP is currently generating about -0.2 per unit of risk. If you would invest  9,636  in Copa Holdings SA on September 3, 2024 and sell it today you would lose (299.00) from holding Copa Holdings SA or give up 3.1% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy85.0%
ValuesDaily Returns

Copa Holdings SA  vs.  LLOYDS BKG GROUP

 Performance 
       Timeline  
Copa Holdings SA 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Copa Holdings SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, Copa Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.
LLOYDS BKG GROUP 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days LLOYDS BKG GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, LLOYDS is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Copa Holdings and LLOYDS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Copa Holdings and LLOYDS

The main advantage of trading using opposite Copa Holdings and LLOYDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, LLOYDS 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 LLOYDS will offset losses from the drop in LLOYDS'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
The idea behind Copa Holdings SA and LLOYDS BKG GROUP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
LLOYDS vs. Copa Holdings SA
LLOYDS vs. United States Steel
LLOYDS vs. Sapiens International
LLOYDS vs. Algoma Steel Group
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY