Correlation Between Invesco Exchange and JIB
Can any of the company-specific risk be diversified away by investing in both Invesco Exchange and JIB 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 Exchange and JIB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Exchange Traded and JIB, you can compare the effects of market volatilities on Invesco Exchange and JIB 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 Exchange with a short position of JIB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Exchange and JIB.
Diversification Opportunities for Invesco Exchange and JIB
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and JIB is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Exchange Traded and JIB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIB and Invesco Exchange 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 Exchange Traded are associated (or correlated) with JIB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIB has no effect on the direction of Invesco Exchange i.e., Invesco Exchange and JIB go up and down completely randomly.
Pair Corralation between Invesco Exchange and JIB
Given the investment horizon of 90 days Invesco Exchange Traded is expected to generate 2.07 times more return on investment than JIB. However, Invesco Exchange is 2.07 times more volatile than JIB. It trades about 0.16 of its potential returns per unit of risk. JIB is currently generating about 0.02 per unit of risk. If you would invest 2,470 in Invesco Exchange Traded on August 28, 2024 and sell it today you would earn a total of 809.00 from holding Invesco Exchange Traded or generate 32.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 55.28% |
| Values | Daily Returns |
Invesco Exchange Traded vs. JIB
Performance |
| Timeline |
| Invesco Exchange Traded |
| JIB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Invesco Exchange and JIB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Exchange and JIB
The main advantage of trading using opposite Invesco Exchange and JIB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Exchange position performs unexpectedly, JIB 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 JIB will offset losses from the drop in JIB's long position.| Invesco Exchange vs. Franklin Templeton ETF | Invesco Exchange vs. Altrius Global Dividend | Invesco Exchange vs. Franklin International Core | Invesco Exchange vs. Madison ETFs Trust |
| JIB vs. iShares MSCI EAFE | JIB vs. iShares iBoxx Investment | JIB vs. iShares TIPS Bond | JIB vs. iShares 1 3 Year |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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