Correlation Between Invesco CoinShares and Invesco EURO
Can any of the company-specific risk be diversified away by investing in both Invesco CoinShares and Invesco EURO 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 Invesco CoinShares and Invesco EURO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco CoinShares Global and Invesco EURO STOXX, you can compare the effects of market volatilities on Invesco CoinShares and Invesco EURO 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 CoinShares with a short position of Invesco EURO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco CoinShares and Invesco EURO.
Diversification Opportunities for Invesco CoinShares and Invesco EURO
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invesco and Invesco is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Invesco CoinShares Global and Invesco EURO STOXX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco EURO STOXX and Invesco CoinShares 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 CoinShares Global are associated (or correlated) with Invesco EURO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco EURO STOXX has no effect on the direction of Invesco CoinShares i.e., Invesco CoinShares and Invesco EURO go up and down completely randomly.
Pair Corralation between Invesco CoinShares and Invesco EURO
Assuming the 90 days trading horizon Invesco CoinShares Global is expected to generate 1.09 times more return on investment than Invesco EURO. However, Invesco CoinShares is 1.09 times more volatile than Invesco EURO STOXX. It trades about -0.08 of its potential returns per unit of risk. Invesco EURO STOXX is currently generating about -0.13 per unit of risk. If you would invest 9,558 in Invesco CoinShares Global on January 17, 2025 and sell it today you would lose (741.00) from holding Invesco CoinShares Global or give up 7.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco CoinShares Global vs. Invesco EURO STOXX
Performance |
| Timeline |
| Invesco CoinShares Global |
| Invesco EURO STOXX |
Invesco CoinShares and Invesco EURO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco CoinShares and Invesco EURO
The main advantage of trading using opposite Invesco CoinShares and Invesco EURO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco CoinShares position performs unexpectedly, Invesco EURO 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 EURO will offset losses from the drop in Invesco EURO's long position.| Invesco CoinShares vs. Invesco AT1 Capital | Invesco CoinShares vs. Invesco EURO STOXX | Invesco CoinShares vs. Invesco AT1 Capital | Invesco CoinShares vs. Invesco Treasury Bond |
| Invesco EURO vs. Invesco AT1 Capital | Invesco EURO vs. Invesco AT1 Capital | Invesco EURO vs. Invesco Treasury Bond | Invesco EURO vs. Invesco CoinShares Global |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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