Correlation Between Copa Holdings and Pinterest
Can any of the company-specific risk be diversified away by investing in both Copa Holdings and Pinterest 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 Pinterest 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 Pinterest, you can compare the effects of market volatilities on Copa Holdings and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and Pinterest.
Diversification Opportunities for Copa Holdings and Pinterest
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Copa and Pinterest is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Copa Holdings i.e., Copa Holdings and Pinterest go up and down completely randomly.
Pair Corralation between Copa Holdings and Pinterest
Considering the 90-day investment horizon Copa Holdings SA is expected to generate 0.55 times more return on investment than Pinterest. However, Copa Holdings SA is 1.81 times less risky than Pinterest. It trades about 0.03 of its potential returns per unit of risk. Pinterest is currently generating about -0.14 per unit of risk. If you would invest 11,734 in Copa Holdings SA on August 29, 2025 and sell it today you would earn a total of 249.00 from holding Copa Holdings SA or generate 2.12% 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. Pinterest
Performance |
| Timeline |
| Copa Holdings SA |
Copa Holdings and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and Pinterest
The main advantage of trading using opposite Copa Holdings and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| Copa Holdings vs. Xtera Communications | Copa Holdings vs. Pebblebrook Hotel Trust | Copa Holdings vs. DATA Communications Management | Copa Holdings vs. Hoteles City Express |
| Pinterest vs. Mitsui Chemicals ADR | Pinterest vs. DATA Communications Management | Pinterest vs. HPQ Silicon Resources | Pinterest vs. Xiabuxiabu Catering Management |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |