Correlation Between Munivest Fund and Invesco High
Can any of the company-specific risk be diversified away by investing in both Munivest Fund and Invesco High 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 Munivest Fund and Invesco High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Munivest Fund and Invesco High Income, you can compare the effects of market volatilities on Munivest Fund and Invesco High 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 Munivest Fund with a short position of Invesco High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Munivest Fund and Invesco High.
Diversification Opportunities for Munivest Fund and Invesco High
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Munivest and Invesco is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Munivest Fund and Invesco High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco High Income and Munivest Fund 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 Munivest Fund are associated (or correlated) with Invesco High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco High Income has no effect on the direction of Munivest Fund i.e., Munivest Fund and Invesco High go up and down completely randomly.
Pair Corralation between Munivest Fund and Invesco High
Considering the 90-day investment horizon Munivest Fund is expected to generate 6.56 times more return on investment than Invesco High. However, Munivest Fund is 6.56 times more volatile than Invesco High Income. It trades about 0.12 of its potential returns per unit of risk. Invesco High Income is currently generating about 0.29 per unit of risk. If you would invest 719.00 in Munivest Fund on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Munivest Fund or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Munivest Fund vs. Invesco High Income
Performance |
| Timeline |
| Munivest Fund |
| Invesco High Income |
Munivest Fund and Invesco High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Munivest Fund and Invesco High
The main advantage of trading using opposite Munivest Fund and Invesco High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munivest Fund position performs unexpectedly, Invesco High 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 High will offset losses from the drop in Invesco High's long position.| Munivest Fund vs. DTF Tax Free | Munivest Fund vs. MFS High Yield | Munivest Fund vs. MFS High Income | Munivest Fund vs. John Hancock Income |
| Invesco High vs. MFS Investment Grade | Invesco High vs. Eaton Vance National | Invesco High vs. Nuveen California Select | Invesco High vs. Federated Premier 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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