Correlation Between MAAX and Invesco Actively
Can any of the company-specific risk be diversified away by investing in both MAAX and Invesco Actively 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 MAAX and Invesco Actively into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAAX and Invesco Actively Managed, you can compare the effects of market volatilities on MAAX and Invesco Actively 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 MAAX with a short position of Invesco Actively. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAAX and Invesco Actively.
Diversification Opportunities for MAAX and Invesco Actively
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAAX and Invesco is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding MAAX and Invesco Actively Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Actively Managed and MAAX 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 MAAX are associated (or correlated) with Invesco Actively. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Actively Managed has no effect on the direction of MAAX i.e., MAAX and Invesco Actively go up and down completely randomly.
Pair Corralation between MAAX and Invesco Actively
If you would invest 5,105 in Invesco Actively Managed on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Invesco Actively Managed or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
MAAX vs. Invesco Actively Managed
Performance |
| Timeline |
| MAAX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Invesco Actively Managed |
MAAX and Invesco Actively Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAAX and Invesco Actively
The main advantage of trading using opposite MAAX and Invesco Actively positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAAX position performs unexpectedly, Invesco Actively 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 Actively will offset losses from the drop in Invesco Actively's long position.| MAAX vs. VanEck Short High | MAAX vs. VanEck Long Muni | MAAX vs. VanEck CEF Municipal | MAAX vs. First Trust Municipal |
| Invesco Actively vs. Franklin Liberty Federal | Invesco Actively vs. Hartford Municipal Opportunities | Invesco Actively vs. IQ MacKay Municipal | Invesco Actively vs. First Trust Municipal |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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