Correlation Between Invesco Value and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Invesco Value 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 Invesco Value and Invesco Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Value Municipal and Invesco Municipal Income, you can compare the effects of market volatilities on Invesco Value 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 Invesco Value with a short position of Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Value and Invesco Municipal.
Diversification Opportunities for Invesco Value and Invesco Municipal
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Invesco and Invesco is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Value Municipal and Invesco Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Income and Invesco Value 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 Value Municipal 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 Income has no effect on the direction of Invesco Value i.e., Invesco Value and Invesco Municipal go up and down completely randomly.
Pair Corralation between Invesco Value and Invesco Municipal
Considering the 90-day investment horizon Invesco Value Municipal is expected to generate 0.69 times more return on investment than Invesco Municipal. However, Invesco Value Municipal is 1.45 times less risky than Invesco Municipal. It trades about 0.09 of its potential returns per unit of risk. Invesco Municipal Income is currently generating about 0.06 per unit of risk. If you would invest 1,159 in Invesco Value Municipal on August 25, 2024 and sell it today you would earn a total of 69.00 from holding Invesco Value Municipal or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Invesco Value Municipal vs. Invesco Municipal Income
Performance |
| Timeline |
| Invesco Value Municipal |
| Invesco Municipal Income |
Invesco Value and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Value and Invesco Municipal
The main advantage of trading using opposite Invesco Value and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Value 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.| Invesco Value vs. Invesco Municipal Income | Invesco Value vs. DWS Municipal Income | Invesco Value vs. MFS Municipal Income | Invesco Value vs. MFS High Income |
| Invesco Municipal vs. DWS Municipal Income | Invesco Municipal vs. MFS Municipal Income | Invesco Municipal vs. MFS High Income | Invesco Municipal vs. Blackrock Muniyield |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |