Correlation Between Invesco Municipal and Munivest Fund
Can any of the company-specific risk be diversified away by investing in both Invesco Municipal and Munivest Fund 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 Municipal and Munivest Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Municipal Income and Munivest Fund, you can compare the effects of market volatilities on Invesco Municipal and Munivest Fund 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 Municipal with a short position of Munivest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Municipal and Munivest Fund.
Diversification Opportunities for Invesco Municipal and Munivest Fund
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Invesco and Munivest is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Municipal Income and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund and Invesco Municipal 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 Municipal Income are associated (or correlated) with Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of Invesco Municipal i.e., Invesco Municipal and Munivest Fund go up and down completely randomly.
Pair Corralation between Invesco Municipal and Munivest Fund
Considering the 90-day investment horizon Invesco Municipal is expected to generate 1.65 times less return on investment than Munivest Fund. In addition to that, Invesco Municipal is 1.1 times more volatile than Munivest Fund. It trades about 0.12 of its total potential returns per unit of risk. Munivest Fund is currently generating about 0.22 per unit of volatility. If you would invest 718.00 in Munivest Fund on August 30, 2024 and sell it today you would earn a total of 25.00 from holding Munivest Fund or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Invesco Municipal Income vs. Munivest Fund
Performance |
| Timeline |
| Invesco Municipal Income |
| Munivest Fund |
Invesco Municipal and Munivest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Municipal and Munivest Fund
The main advantage of trading using opposite Invesco Municipal and Munivest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Municipal position performs unexpectedly, Munivest Fund 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 Munivest Fund will offset losses from the drop in Munivest Fund's long position.| Invesco Municipal vs. DWS Municipal Income | Invesco Municipal vs. MFS Municipal Income | Invesco Municipal vs. MFS High Income | Invesco Municipal vs. Blackrock Muniyield |
| Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniholdings Closed | Munivest Fund vs. Blackrock Muniholdings Quality |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |