Correlation Between COPT Defense and La Rosa
Can any of the company-specific risk be diversified away by investing in both COPT Defense and La Rosa 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 COPT Defense and La Rosa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COPT Defense Properties and La Rosa Holdings, you can compare the effects of market volatilities on COPT Defense and La Rosa 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 COPT Defense with a short position of La Rosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPT Defense and La Rosa.
Diversification Opportunities for COPT Defense and La Rosa
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COPT and LRHC is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding COPT Defense Properties and La Rosa Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Rosa Holdings and COPT Defense 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 COPT Defense Properties are associated (or correlated) with La Rosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Rosa Holdings has no effect on the direction of COPT Defense i.e., COPT Defense and La Rosa go up and down completely randomly.
Pair Corralation between COPT Defense and La Rosa
Considering the 90-day investment horizon COPT Defense Properties is expected to generate 0.16 times more return on investment than La Rosa. However, COPT Defense Properties is 6.28 times less risky than La Rosa. It trades about 0.03 of its potential returns per unit of risk. La Rosa Holdings is currently generating about -0.03 per unit of risk. If you would invest 2,767 in COPT Defense Properties on July 20, 2025 and sell it today you would earn a total of 38.00 from holding COPT Defense Properties or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COPT Defense Properties vs. La Rosa Holdings
Performance |
| Timeline |
| COPT Defense Properties |
| La Rosa Holdings |
COPT Defense and La Rosa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COPT Defense and La Rosa
The main advantage of trading using opposite COPT Defense and La Rosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPT Defense position performs unexpectedly, La Rosa 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 La Rosa will offset losses from the drop in La Rosa's long position.| COPT Defense vs. Highwoods Properties | COPT Defense vs. Vornado Realty Trust | COPT Defense vs. Granite Real Estate | COPT Defense vs. Public Storage |
| La Rosa vs. Avalon GloboCare Corp | La Rosa vs. Presidio Property Trust | La Rosa vs. Ucommune International | La Rosa vs. New Concept Energy |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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