Correlation Analysis Between American Airlines and Copa Holdings

Analyzing existing cross correlation between American Airlines Group and Copa Holdings S A Copa Holdin. You can compare the effects of market volatilities on American Airlines 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 American Airlines with a short position of Copa Holdings. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Copa Holdings.
Horizon     30 Days    Login   to change
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Comparative Performance

American Airlines  
00

Risk-Adjusted Performance

Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, American Airlines is not utilizing all of its potentials. The continuing stock price chaos, may contribute to medium term losses for the stakeholders.
Copa Holdings S  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Copa Holdings S A Copa Holdin are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Copa Holdings is not utilizing all of its potentials. The continuing stock price disturbance, may contribute to short term losses for the investors.

American Airlines and Copa Holdings Volatility Contrast

 Predicted Return Density 
    
  Returns 

American Airlines Group Inc  vs.  Copa Holdings S A Copa Holdin

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines is expected to generate 4.62 times less return on investment than Copa Holdings. In addition to that, American Airlines is 1.4 times more volatile than Copa Holdings S A Copa Holdin. It trades about 0.0 of its total potential returns per unit of risk. Copa Holdings S A Copa Holdin is currently generating about 0.02 per unit of volatility. If you would invest  10,255  in Copa Holdings S A Copa Holdin on December 19, 2019 and sell it today you would earn a total of  96.00  from holding Copa Holdings S A Copa Holdin or generate 0.94% return on investment over 30 days.

Pair Corralation between American Airlines and Copa Holdings

0.27
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Airlines and Copa Holdings

American Airlines Group Inc diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Copa Holdings S A Copa Holdin in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Copa Holdings S and American Airlines 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 American Airlines Group 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 S has no effect on the direction of American Airlines i.e. American Airlines and Copa Holdings go up and down completely randomly.
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