Correlation Between Invesco Global and CI Global
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By analyzing existing cross correlation between Invesco Global Companies and CI Global Resource, you can compare the effects of market volatilities on Invesco Global and CI Global 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 Invesco Global with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Global and CI Global.
Diversification Opportunities for Invesco Global and CI Global
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Invesco and 0P000070I2 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Global Companies and CI Global Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Resource and Invesco Global 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 Invesco Global Companies are associated (or correlated) with CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Resource has no effect on the direction of Invesco Global i.e., Invesco Global and CI Global go up and down completely randomly.
Pair Corralation between Invesco Global and CI Global
Assuming the 90 days trading horizon Invesco Global Companies is expected to generate 1.3 times more return on investment than CI Global. However, Invesco Global is 1.3 times more volatile than CI Global Resource. It trades about -0.04 of its potential returns per unit of risk. CI Global Resource is currently generating about -0.09 per unit of risk. If you would invest 7,411 in Invesco Global Companies on October 22, 2024 and sell it today you would lose (192.00) from holding Invesco Global Companies or give up 2.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Invesco Global Companies vs. CI Global Resource
Performance |
| Timeline |
| Invesco Global Companies |
| CI Global Resource |
Invesco Global and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Global and CI Global
The main advantage of trading using opposite Invesco Global and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Global position performs unexpectedly, CI Global 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 CI Global will offset losses from the drop in CI Global's long position.| Invesco Global vs. CDSPI Global Growth | Invesco Global vs. Fidelity Global Equity | Invesco Global vs. Renaissance Global Science | Invesco Global vs. Mawer Global Small |
| CI Global vs. Mackenzie Canadian Growth | CI Global vs. AGF American Growth | CI Global vs. Fidelity Canadian Growth | CI Global vs. CDSPI Global Growth |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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