Correlation Between Copa Holdings and JetAI

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

Diversification Opportunities for Copa Holdings and JetAI

-0.51

Correlation Coefficient

Copa Holdings  JetAI

Excellent diversification

The 3 months correlation between Copa and JetAI is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and JetAI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetAI Inc 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 JetAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetAI Inc has no effect on the direction of Copa Holdings i.e., Copa Holdings and JetAI go up and down completely randomly.

Pair Corralation between Copa Holdings and JetAI

Considering the 90-day investment horizon Copa Holdings SA is expected to generate 0.41 times more return on investment than JetAI. However, Copa Holdings SA is 2.45 times less risky than JetAI. It trades about 0.18 of its potential returns per unit of risk. JetAI Inc is currently generating about -0.08 per unit of risk. If you would invest  9,337  in Copa Holdings SA on May 3, 2025 and sell it today you would earn a total of  1,729  from holding Copa Holdings SA or generate 18.52% return on investment over 90 days.

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

Copa Holdings SA  vs.  JetAI Inc

Copa Holdings SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Copa Holdings SA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Copa Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

JetAI Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days JetAI Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Copa Holdings and JetAI

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

The idea behind Copa Holdings SA and JetAI Inc 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.