Correlation Between Invesco Technology and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Invesco Technology and Mainstay Epoch 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 Technology and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Technology Fund and Mainstay Epoch Equity, you can compare the effects of market volatilities on Invesco Technology and Mainstay Epoch 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 Technology with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Technology and Mainstay Epoch.
Diversification Opportunities for Invesco Technology and Mainstay Epoch
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Invesco and Mainstay is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Technology Fund and Mainstay Epoch Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Equity and Invesco Technology 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 Technology Fund are associated (or correlated) with Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Equity has no effect on the direction of Invesco Technology i.e., Invesco Technology and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Invesco Technology and Mainstay Epoch
Assuming the 90 days horizon Invesco Technology Fund is expected to generate 2.17 times more return on investment than Mainstay Epoch. However, Invesco Technology is 2.17 times more volatile than Mainstay Epoch Equity. It trades about 0.17 of its potential returns per unit of risk. Mainstay Epoch Equity is currently generating about 0.24 per unit of risk. If you would invest 6,886 in Invesco Technology Fund on August 30, 2024 and sell it today you would earn a total of 403.00 from holding Invesco Technology Fund or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Technology Fund vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Invesco Technology |
| Mainstay Epoch Equity |
Invesco Technology and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Technology and Mainstay Epoch
The main advantage of trading using opposite Invesco Technology and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Technology position performs unexpectedly, Mainstay Epoch 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 Epoch will offset losses from the drop in Mainstay Epoch's long position.| Invesco Technology vs. Veea Inc | Invesco Technology vs. VivoPower International PLC | Invesco Technology vs. WEBTOON Entertainment Common | Invesco Technology vs. Invesco Municipal Income |
| Mainstay Epoch vs. Invesco Technology Fund | Mainstay Epoch vs. Towpath Technology | Mainstay Epoch vs. Blackrock Science Technology | Mainstay Epoch vs. Mfs Technology Fund |
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 CEOs Directory module to screen CEOs from public companies around the world.
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