Correlation Between Invesco Exchange and Consumer Staples
Can any of the company-specific risk be diversified away by investing in both Invesco Exchange and Consumer Staples 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 Consumer Staples 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 Consumer Staples Select, you can compare the effects of market volatilities on Invesco Exchange and Consumer Staples 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 Consumer Staples. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Exchange and Consumer Staples.
Diversification Opportunities for Invesco Exchange and Consumer Staples
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invesco and Consumer is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Exchange Traded and Consumer Staples Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Staples Select 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 Consumer Staples. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Staples Select has no effect on the direction of Invesco Exchange i.e., Invesco Exchange and Consumer Staples go up and down completely randomly.
Pair Corralation between Invesco Exchange and Consumer Staples
Given the investment horizon of 90 days Invesco Exchange Traded is expected to generate 1.08 times more return on investment than Consumer Staples. However, Invesco Exchange is 1.08 times more volatile than Consumer Staples Select. It trades about 0.16 of its potential returns per unit of risk. Consumer Staples Select is currently generating about 0.04 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 | Very Weak |
| Accuracy | 49.49% |
| Values | Daily Returns |
Invesco Exchange Traded vs. Consumer Staples Select
Performance |
| Timeline |
| Invesco Exchange Traded |
| Consumer Staples Select |
Invesco Exchange and Consumer Staples Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Exchange and Consumer Staples
The main advantage of trading using opposite Invesco Exchange and Consumer Staples positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Exchange position performs unexpectedly, Consumer Staples 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 Consumer Staples will offset losses from the drop in Consumer Staples' 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 |
| Consumer Staples vs. Vanguard Consumer Discretionary | Consumer Staples vs. Vanguard Utilities Index | Consumer Staples vs. Vanguard Industrials Index | Consumer Staples vs. Vanguard Materials Index |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |