Correlation Between High-yield Municipal and Invesco
Can any of the company-specific risk be diversified away by investing in both High-yield Municipal and Invesco 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 High-yield Municipal and Invesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Municipal Fund and Invesco, you can compare the effects of market volatilities on High-yield Municipal and Invesco 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 High-yield Municipal with a short position of Invesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of High-yield Municipal and Invesco.
Diversification Opportunities for High-yield Municipal and Invesco
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between High-yield and Invesco is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and Invesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco and High-yield Municipal 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 High Yield Municipal Fund are associated (or correlated) with Invesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco has no effect on the direction of High-yield Municipal i.e., High-yield Municipal and Invesco go up and down completely randomly.
Pair Corralation between High-yield Municipal and Invesco
If you would invest 853.00 in High Yield Municipal Fund on September 3, 2024 and sell it today you would earn a total of 50.00 from holding High Yield Municipal Fund or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.6% |
| Values | Daily Returns |
High Yield Municipal Fund vs. Invesco
Performance |
| Timeline |
| High Yield Municipal |
| Invesco |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
High-yield Municipal and Invesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High-yield Municipal and Invesco
The main advantage of trading using opposite High-yield Municipal and Invesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High-yield Municipal position performs unexpectedly, Invesco 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 Invesco will offset losses from the drop in Invesco's long position.| High-yield Municipal vs. High Yield Fund Investor | High-yield Municipal vs. Intermediate Term Tax Free Bond | High-yield Municipal vs. California High Yield Municipal | High-yield Municipal vs. T Rowe Price |
| Invesco vs. Nuveen Short Term REIT | Invesco vs. Invesco Active Real | Invesco vs. Pacer Benchmark Industrial |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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