Correlation Between PATTERSON and Copa Holdings
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By analyzing existing cross correlation between PATTERSON UTI ENERGY INC and Copa Holdings SA, you can compare the effects of market volatilities on PATTERSON and Copa Holdings 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 PATTERSON with a short position of Copa Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PATTERSON and Copa Holdings.
Diversification Opportunities for PATTERSON and Copa Holdings
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PATTERSON and Copa is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding PATTERSON UTI ENERGY INC and Copa Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copa Holdings SA and PATTERSON 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 PATTERSON UTI ENERGY INC are associated (or correlated) with Copa Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copa Holdings SA has no effect on the direction of PATTERSON i.e., PATTERSON and Copa Holdings go up and down completely randomly.
Pair Corralation between PATTERSON and Copa Holdings
Assuming the 90 days trading horizon PATTERSON is expected to generate 4.66 times less return on investment than Copa Holdings. But when comparing it to its historical volatility, PATTERSON UTI ENERGY INC is 2.89 times less risky than Copa Holdings. It trades about 0.04 of its potential returns per unit of risk. Copa Holdings SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,146 in Copa Holdings SA on November 28, 2024 and sell it today you would earn a total of 219.00 from holding Copa Holdings SA or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PATTERSON UTI ENERGY INC vs. Copa Holdings SA
Performance |
| Timeline |
| PATTERSON UTI ENERGY |
| Copa Holdings SA |
PATTERSON and Copa Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PATTERSON and Copa Holdings
The main advantage of trading using opposite PATTERSON and Copa Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PATTERSON position performs unexpectedly, Copa Holdings 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 Copa Holdings will offset losses from the drop in Copa Holdings' long position.| PATTERSON vs. LB Foster | PATTERSON vs. Cytek Biosciences | PATTERSON vs. Alvotech | PATTERSON vs. Weyco Group |
| Copa Holdings vs. SkyWest | Copa Holdings vs. Sun Country Airlines | Copa Holdings vs. Air Transport Services | 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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