Correlation Between Invesco Energy and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Invesco Energy and Mainstay Growth 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 Energy and Mainstay Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Energy Fund and Mainstay Growth Etf, you can compare the effects of market volatilities on Invesco Energy and Mainstay Growth 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 Energy with a short position of Mainstay Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Energy and Mainstay Growth.
Diversification Opportunities for Invesco Energy and Mainstay Growth
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Invesco and Mainstay is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Energy Fund and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf and Invesco Energy 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 Energy Fund are associated (or correlated) with Mainstay Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Invesco Energy i.e., Invesco Energy and Mainstay Growth go up and down completely randomly.
Pair Corralation between Invesco Energy and Mainstay Growth
Assuming the 90 days horizon Invesco Energy Fund is expected to under-perform the Mainstay Growth. In addition to that, Invesco Energy is 1.92 times more volatile than Mainstay Growth Etf. It trades about -0.1 of its total potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.11 per unit of volatility. If you would invest 1,483 in Mainstay Growth Etf on September 14, 2024 and sell it today you would earn a total of 15.00 from holding Mainstay Growth Etf or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Energy Fund vs. Mainstay Growth Etf
Performance |
| Timeline |
| Invesco Energy |
| Mainstay Growth Etf |
Invesco Energy and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Energy and Mainstay Growth
The main advantage of trading using opposite Invesco Energy and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Energy position performs unexpectedly, Mainstay Growth 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 Mainstay Growth will offset losses from the drop in Mainstay Growth's long position.| Invesco Energy vs. Dunham Porategovernment Bond | Invesco Energy vs. Jpmorgan Government Bond | Invesco Energy vs. Aig Government Money | Invesco Energy vs. Davis Government Bond |
| Mainstay Growth vs. Alpsalerian Energy Infrastructure | Mainstay Growth vs. Invesco Energy Fund | Mainstay Growth vs. Goehring Rozencwajg Resources | Mainstay Growth vs. Calvert Global Energy |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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