Correlation Between Copa Holdings and Regency Centers

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

Diversification Opportunities for Copa Holdings and Regency Centers

0.84

Correlation Coefficient

Copa Holdings  Regency Centers

Very poor diversification

The 3 months correlation between Copa and Regency is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers 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 Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Copa Holdings i.e., Copa Holdings and Regency Centers go up and down completely randomly.

Pair Corralation between Copa Holdings and Regency Centers

Considering the 90-day investment horizon Copa Holdings SA is expected to generate 2.44 times more return on investment than Regency Centers. However, Copa Holdings is 2.44 times more volatile than Regency Centers. It trades about 0.11 of its potential returns per unit of risk. Regency Centers is currently generating about 0.13 per unit of risk. If you would invest  10,976  in Copa Holdings SA on July 7, 2025 and sell it today you would earn a total of  1,090  from holding Copa Holdings SA or generate 9.93% return on investment over 90 days.

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

Copa Holdings SA  vs.  Regency Centers

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 8 (%) 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.

Regency Centers

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Regency Centers are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Regency Centers is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Copa Holdings and Regency Centers

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

The idea behind Copa Holdings SA and Regency Centers 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.