Correlation Between Aim International and Invesco Comstock

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Can any of the company-specific risk be diversified away by investing in both Aim International and Invesco Comstock 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 Aim International and Invesco Comstock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aim International Mutual and Invesco Stock Fund, you can compare the effects of market volatilities on Aim International and Invesco Comstock 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 Aim International with a short position of Invesco Comstock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aim International and Invesco Comstock.

Diversification Opportunities for Aim International and Invesco Comstock

-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Aim and Invesco is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Aim International Mutual and Invesco Stock Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Comstock and Aim International 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 Aim International Mutual are associated (or correlated) with Invesco Comstock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Comstock has no effect on the direction of Aim International i.e., Aim International and Invesco Comstock go up and down completely randomly.

Pair Corralation between Aim International and Invesco Comstock

Assuming the 90 days horizon Aim International Mutual is expected to under-perform the Invesco Comstock. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aim International Mutual is 1.2 times less risky than Invesco Comstock. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Invesco Stock Fund is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  3,141  in Invesco Stock Fund on August 29, 2024 and sell it today you would earn a total of  155.00  from holding Invesco Stock Fund or generate 4.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Aim International Mutual  vs.  Invesco Stock Fund

 Performance 
       Timeline  
Aim International Mutual 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aim International Mutual has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.
Invesco Comstock 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Stock Fund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Invesco Comstock may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Aim International and Invesco Comstock Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aim International and Invesco Comstock

The main advantage of trading using opposite Aim International and Invesco Comstock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aim International position performs unexpectedly, Invesco Comstock 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 Comstock will offset losses from the drop in Invesco Comstock's long position.
The idea behind Aim International Mutual and Invesco Stock Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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