Correlation Analysis Between American Airlines and Copa Holdings

This module allows you to analyze 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
Check Efficiency

Comparative Performance

American Airlines  

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 sluggish performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in September 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.
Copa Holdings S  

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 5 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Copa Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

American Airlines and Copa Holdings Volatility Contrast

 Predicted Return Density 

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

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group is expected to under-perform the Copa Holdings. But the stock apears to be less risky and, when comparing its historical volatility, American Airlines Group is 1.14 times less risky than Copa Holdings. The stock trades about -0.18 of its potential returns per unit of risk. The Copa Holdings S A Copa Holdin is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  9,565  in Copa Holdings S A Copa Holdin on July 22, 2019 and sell it today you would earn a total of  753.00  from holding Copa Holdings S A Copa Holdin or generate 7.87% return on investment over 30 days.

Pair Corralation between American Airlines and Copa Holdings

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for American Airlines and Copa Holdings

American Airlines Group Inc diversification synergy

Very good 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.
See also your portfolio center. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.