Correlation Between Cboe UK and Invesco EQQQ
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By analyzing existing cross correlation between Cboe UK Consumer and Invesco EQQQ NASDAQ 100, you can compare the effects of market volatilities on Cboe UK and Invesco EQQQ 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 Cboe UK with a short position of Invesco EQQQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Invesco EQQQ.
Diversification Opportunities for Cboe UK and Invesco EQQQ
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cboe and Invesco is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Invesco EQQQ NASDAQ 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco EQQQ NASDAQ and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Invesco EQQQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco EQQQ NASDAQ has no effect on the direction of Cboe UK i.e., Cboe UK and Invesco EQQQ go up and down completely randomly.
Pair Corralation between Cboe UK and Invesco EQQQ
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.86 times more return on investment than Invesco EQQQ. However, Cboe UK Consumer is 1.16 times less risky than Invesco EQQQ. It trades about 0.2 of its potential returns per unit of risk. Invesco EQQQ NASDAQ 100 is currently generating about 0.1 per unit of risk. If you would invest 2,600,455 in Cboe UK Consumer on September 1, 2024 and sell it today you would earn a total of 659,847 from holding Cboe UK Consumer or generate 25.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Invesco EQQQ NASDAQ 100
Performance |
| Timeline |
Cboe UK and Invesco EQQQ Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Invesco EQQQ NASDAQ 100
Pair trading matchups for Invesco EQQQ
Pair Trading with Cboe UK and Invesco EQQQ
The main advantage of trading using opposite Cboe UK and Invesco EQQQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Invesco EQQQ 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 EQQQ will offset losses from the drop in Invesco EQQQ's long position.| Cboe UK vs. Panther Metals PLC | Cboe UK vs. Lundin Mining Corp | Cboe UK vs. Gamma Communications PLC | Cboe UK vs. GoldMining |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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