Correlation Between CBH and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both CBH and Invesco Municipal 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 Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Invesco Municipal Opportunity, you can compare the effects of market volatilities on CBH and Invesco Municipal 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 Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Invesco Municipal.
Diversification Opportunities for CBH and Invesco Municipal
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBH and Invesco is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Invesco Municipal Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal 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 Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal has no effect on the direction of CBH i.e., CBH and Invesco Municipal go up and down completely randomly.
Pair Corralation between CBH and Invesco Municipal
If you would invest 1,791 in CBH on September 18, 2024 and sell it today you would earn a total of 0.00 from holding CBH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.52% |
| Values | Daily Returns |
CBH vs. Invesco Municipal Opportunity
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Invesco Municipal |
CBH and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Invesco Municipal
The main advantage of trading using opposite CBH and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Invesco Municipal 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 Municipal will offset losses from the drop in Invesco Municipal's long position.| CBH vs. Brookfield Real Assets | CBH vs. Guggenheim Strategic Opportunities | CBH vs. Cornerstone Strategic Return | CBH vs. Cornerstone Strategic Value |
| Invesco Municipal vs. Invesco Quality Municipal | Invesco Municipal vs. Invesco Advantage MIT | Invesco Municipal vs. Invesco Municipal Trust | Invesco Municipal vs. Invesco California Value |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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