Correlation Between CBH and Invesco Advantage
Can any of the company-specific risk be diversified away by investing in both CBH and Invesco Advantage 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 CBH and Invesco Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Invesco Advantage MIT, you can compare the effects of market volatilities on CBH and Invesco Advantage 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 CBH with a short position of Invesco Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Invesco Advantage.
Diversification Opportunities for CBH and Invesco Advantage
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between CBH and Invesco is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Invesco Advantage MIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Advantage MIT and CBH 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 CBH are associated (or correlated) with Invesco Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Advantage MIT has no effect on the direction of CBH i.e., CBH and Invesco Advantage go up and down completely randomly.
Pair Corralation between CBH and Invesco Advantage
If you would invest 891.00 in Invesco Advantage MIT on August 31, 2024 and sell it today you would earn a total of 25.00 from holding Invesco Advantage MIT or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
CBH vs. Invesco Advantage MIT
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Invesco Advantage MIT |
CBH and Invesco Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Invesco Advantage
The main advantage of trading using opposite CBH and Invesco Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Invesco Advantage 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 Advantage will offset losses from the drop in Invesco Advantage's long position.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
| Invesco Advantage vs. Invesco Quality Municipal | Invesco Advantage vs. Invesco California Value | Invesco Advantage vs. DWS Municipal Income | Invesco Advantage vs. Invesco Trust For |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |