Correlation Between COPT Defense and CEO America

Can any of the company-specific risk be diversified away by investing in both COPT Defense and CEO America 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 CEO America 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 CEO America, you can compare the effects of market volatilities on COPT Defense and CEO America 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 CEO America. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPT Defense and CEO America.

Diversification Opportunities for COPT Defense and CEO America

0.0

Correlation Coefficient

COPT Defense  CEO America

Pay attention - limited upside

The 3 months correlation between COPT and CEO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COPT Defense Properties and CEO America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO America 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 CEO America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO America has no effect on the direction of COPT Defense i.e., COPT Defense and CEO America go up and down completely randomly.

Pair Corralation between COPT Defense and CEO America

If you would invest  0.00  in CEO America on July 13, 2025 and sell it today you would earn a total of  0.00  from holding CEO America or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

COPT Defense Properties  vs.  CEO America

COPT Defense Properties

Risk-Adjusted Performance

Weakest

Over the last 90 days COPT Defense Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, COPT Defense is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

CEO America

Risk-Adjusted Performance

Weakest

Over the last 90 days CEO America has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CEO America is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with COPT Defense and CEO America

The main advantage of trading using opposite COPT Defense and CEO America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPT Defense position performs unexpectedly, CEO America 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 CEO America will offset losses from the drop in CEO America's long position.

The idea behind COPT Defense Properties and CEO America pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.