Correlation Between Copa Holdings and Delta Air

By analyzing existing cross correlation between Copa Holdings S and Delta Air Lines, you can compare the effects of market volatilities on Copa Holdings and Delta Air 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 Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and Delta Air.

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Can any of the company-specific risk be diversified away by investing in both Copa Holdings and Delta Air 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 Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Copa Holdings and Delta Air

0.85
  Correlation Coefficient
Copa Holdings S
Delta Air Lines

Very poor diversification

The 3 months correlation between Copa Holdings and Delta is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings S A Copa Holdin and Delta Air Lines Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Delta Air Lines 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 S are associated (or correlated) with Delta Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Air Lines has no effect on the direction of Copa Holdings i.e. Copa Holdings and Delta Air go up and down completely randomly.

Pair Corralation between Copa Holdings and Delta Air

Considering the 30-days investment horizon, Copa Holdings S is expected to generate 1.0 times more return on investment than Delta Air. However, Copa Holdings S is 1.0 times less risky than Delta Air. It trades about 0.12 of its potential returns per unit of risk. Delta Air Lines is currently generating about 0.09 per unit of risk. If you would invest  3,707  in Copa Holdings S on June 3, 2020 and sell it today you would earn a total of  1,383  from holding Copa Holdings S or generate 37.31% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Copa Holdings S A Copa Holdin  vs.  Delta Air Lines Inc

 Performance (%) 
      Timeline 
Copa Holdings S 
77

Copa Holdings Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Copa Holdings S are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Copa Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.
Delta Air Lines 
66

Delta Air Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Delta Air Lines are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Delta Air revealed solid returns over the last few months and may actually be approaching a breakup point.

Copa Holdings and Delta Air Volatility Contrast

 Predicted Return Density 
      Returns 
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