Correlation Between Copa Holdings and FS KKR

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

Diversification Opportunities for Copa Holdings and FS KKR

-0.93

Correlation Coefficient

Copa Holdings  FS KKR

Pay attention - limited upside

The 3 months correlation between Copa and FSK is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital 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 FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of Copa Holdings i.e., Copa Holdings and FS KKR go up and down completely randomly.

Pair Corralation between Copa Holdings and FS KKR

Considering the 90-day investment horizon Copa Holdings SA is expected to generate 0.91 times more return on investment than FS KKR. However, Copa Holdings SA is 1.09 times less risky than FS KKR. It trades about 0.13 of its potential returns per unit of risk. FS KKR Capital is currently generating about -0.3 per unit of risk. If you would invest  10,787  in Copa Holdings SA on July 8, 2025 and sell it today you would earn a total of  1,311  from holding Copa Holdings SA or generate 12.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Copa Holdings SA  vs.  FS KKR Capital

Copa Holdings SA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Copa Holdings SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Copa Holdings may actually be approaching a critical reversion point that can send shares even higher in November 2025.

FS KKR Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days FS KKR Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in November 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Copa Holdings and FS KKR

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

The idea behind Copa Holdings SA and FS KKR Capital 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.