Correlation Between Copa Holdings and EverQuote
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and EverQuote 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 EverQuote into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Copa Holdings SA and EverQuote Class A, you can compare the effects of market volatilities on Copa Holdings and EverQuote 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 EverQuote. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and EverQuote.
Diversification Opportunities for Copa Holdings and EverQuote
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Copa and EverQuote is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and EverQuote Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EverQuote Class A 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 SA are associated (or correlated) with EverQuote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EverQuote Class A has no effect on the direction of Copa Holdings i.e., Copa Holdings and EverQuote go up and down completely randomly.
Pair Corralation between Copa Holdings and EverQuote
Considering the 90-day investment horizon Copa Holdings is expected to generate 1.21 times less return on investment than EverQuote. But when comparing it to its historical volatility, Copa Holdings SA is 1.9 times less risky than EverQuote. It trades about 0.1 of its potential returns per unit of risk. EverQuote Class A is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,326 in EverQuote Class A on August 18, 2025 and sell it today you would earn a total of 210.00 from holding EverQuote Class A or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copa Holdings SA vs. EverQuote Class A
Performance |
| Timeline |
| Copa Holdings SA |
| EverQuote Class A |
Copa Holdings and EverQuote Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and EverQuote
The main advantage of trading using opposite Copa Holdings and EverQuote positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, EverQuote 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 EverQuote will offset losses from the drop in EverQuote's long position.| Copa Holdings vs. Grupo Aeroportuario del | Copa Holdings vs. SkyWest | Copa Holdings vs. Alaska Air Group | Copa Holdings vs. KBR Inc |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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