Copa Holdings Sa Stock Volatility
| CPA Stock | USD 102.39 0.71 0.70% |
We consider Copa Holdings very steady. Copa Holdings SA secures Sharpe Ratio (or Efficiency) of 0.11, which signifies that the company had a 0.11% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Copa Holdings SA, which you can use to evaluate the volatility of the firm. Please confirm Copa Holdings' Downside Deviation of 1.7, risk adjusted performance of 0.0856, and Mean Deviation of 1.2 to double-check if the risk estimate we provide is consistent with the expected return of 0.18%. Key indicators related to Copa Holdings' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Copa Holdings Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Copa daily returns, and it is calculated using variance and standard deviation. We also use Copa's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Copa Holdings volatility.
Copa |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Copa Holdings can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Copa Holdings at lower prices. For example, an investor can purchase Copa stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Copa Holdings' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Copa Stock
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Moving against Copa Stock
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| 0.41 | HA | Hawaiian Holdings Earnings Call Tomorrow | PairCorr |
Copa Holdings Market Sensitivity And Downside Risk
Copa Holdings' beta coefficient measures the volatility of Copa stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Copa stock's returns against your selected market. In other words, Copa Holdings's beta of 1.49 provides an investor with an approximation of how much risk Copa Holdings stock can potentially add to one of your existing portfolios. Copa Holdings SA has relatively low volatility with skewness of -0.73 and kurtosis of 2.99. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Copa Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Copa Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Copa Holdings SA Demand TrendCheck current 90 days Copa Holdings correlation with market (NYSE Composite)Copa Beta |
Copa standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 1.66 |
It is essential to understand the difference between upside risk (as represented by Copa Holdings's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Copa Holdings' daily returns or price. Since the actual investment returns on holding a position in copa stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Copa Holdings.
Using Copa Put Option to Manage Risk
Put options written on Copa Holdings grant holders of the option the right to sell a specified amount of Copa Holdings at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Copa Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Copa Holdings' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Copa Holdings will be realized, the loss incurred will be offset by the profits made with the option trade.
Copa Holdings' PUT expiring on 2024-05-17
Profit |
| Copa Holdings Price At Expiration |
Current Copa Holdings Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $110.0 | -0.775 | 0.03 | 1 | 2024-05-17 | 9.0 - 10.1 | 6.7 | View |
Put | 2024-05-17 PUT at $105.0 | -0.6032 | 0.0368 | 23 | 2024-05-17 | 5.8 - 6.4 | 8.04 | View |
Put | 2024-05-17 PUT at $100.0 | -0.4173 | 0.036 | 53 | 2024-05-17 | 2.25 - 3.7 | 3.5 | View |
Put | 2024-05-17 PUT at $95.0 | -0.2522 | 0.0283 | 103 | 2024-05-17 | 1.7 - 2.0 | 1.8 | View |
Put | 2024-05-17 PUT at $90.0 | -0.1327 | 0.0183 | 334 | 2024-05-17 | 0.65 - 1.0 | 1.75 | View |
Put | 2024-05-17 PUT at $85.0 | -0.0731 | 0.0106 | 207 | 2024-05-17 | 0.2 - 0.55 | 0.45 | View |
Put | 2024-05-17 PUT at $80.0 | -0.0403 | 0.006 | 211 | 2024-05-17 | 0.2 - 0.3 | 0.65 | View |
Put | 2024-05-17 PUT at $75.0 | -0.0205 | 0.0031 | 119 | 2024-05-17 | 0.05 - 0.2 | 0.2 | View |
Put | 2024-05-17 PUT at $70.0 | -0.0394 | 0.0037 | 43 | 2024-05-17 | 0.05 - 0.75 | 0.2 | View |
Copa Holdings SA Stock Volatility Analysis
Volatility refers to the frequency at which Copa Holdings stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Copa Holdings' price changes. Investors will then calculate the volatility of Copa Holdings' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Copa Holdings' volatility:
Historical Volatility
This type of stock volatility measures Copa Holdings' fluctuations based on previous trends. It's commonly used to predict Copa Holdings' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Copa Holdings' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Copa Holdings' to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Copa Holdings SA Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Copa Holdings Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.4852 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Copa Holdings will likely underperform.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Copa Holdings or Passenger Airlines sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Copa Holdings' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Copa stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Copa Holdings SA has an alpha of 0.0926, implying that it can generate a 0.0926 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Copa Holdings Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Copa Holdings Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Copa Holdings is 905.39. The daily returns are distributed with a variance of 2.76 and standard deviation of 1.66. The mean deviation of Copa Holdings SA is currently at 1.2. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.61
α | Alpha over NYSE Composite | 0.09 | |
β | Beta against NYSE Composite | 1.49 | |
σ | Overall volatility | 1.66 | |
Ir | Information ratio | 0.08 |
Copa Holdings Stock Return Volatility
Copa Holdings historical daily return volatility represents how much of Copa Holdings stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.6598% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6252% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Copa Holdings Volatility
Volatility is a rate at which the price of Copa Holdings or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Copa Holdings may increase or decrease. In other words, similar to Copa's beta indicator, it measures the risk of Copa Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of Copa Holdings fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 258.1 M | 271 M | |
| Market Cap | 3.8 B | 2.8 B |
Copa Holdings' stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Copa Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Copa Holdings' price varies over time.
3 ways to utilize Copa Holdings' volatility to invest better
Higher Copa Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Copa Holdings SA stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Copa Holdings SA stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Copa Holdings SA investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Copa Holdings' stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Copa Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Copa Holdings Investment Opportunity
Copa Holdings SA has a volatility of 1.66 and is 2.63 times more volatile than NYSE Composite. 14 percent of all equities and portfolios are less risky than Copa Holdings. You can use Copa Holdings SA to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Copa Holdings to be traded at $112.63 in 90 days.Very weak diversification
The correlation between Copa Holdings SA and NYA is 0.55 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and NYA in the same portfolio, assuming nothing else is changed.
Copa Holdings Additional Risk Indicators
The analysis of Copa Holdings' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Copa Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of Copa Holdings stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0856 | |||
| Market Risk Adjusted Performance | 0.1477 | |||
| Mean Deviation | 1.2 | |||
| Semi Deviation | 1.5 | |||
| Downside Deviation | 1.7 | |||
| Coefficient Of Variation | 771.39 | |||
| Standard Deviation | 1.66 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Copa Holdings Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Copa Holdings as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Copa Holdings' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Copa Holdings' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Copa Holdings SA.
When determining whether Copa Holdings SA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Copa Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Copa Holdings Sa Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Copa Holdings Sa Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Copa Holdings SA. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Complementary Tools for Copa Stock analysis
When running Copa Holdings' price analysis, check to measure Copa Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Copa Holdings is operating at the current time. Most of Copa Holdings' value examination focuses on studying past and present price action to predict the probability of Copa Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Copa Holdings' price. Additionally, you may evaluate how the addition of Copa Holdings to your portfolios can decrease your overall portfolio volatility.
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Is Copa Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Copa Holdings. If investors know Copa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Copa Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.039 | Dividend Share 3.28 | Earnings Share 12.89 | Revenue Per Share 86.095 | Quarterly Revenue Growth 0.03 |
The market value of Copa Holdings SA is measured differently than its book value, which is the value of Copa that is recorded on the company's balance sheet. Investors also form their own opinion of Copa Holdings' value that differs from its market value or its book value, called intrinsic value, which is Copa Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Copa Holdings' market value can be influenced by many factors that don't directly affect Copa Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Copa Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Copa Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Copa Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.