Correlation Between Invesco Agriculture and Listed Funds
Can any of the company-specific risk be diversified away by investing in both Invesco Agriculture and Listed Funds 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 Agriculture and Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Agriculture Commodity and Listed Funds Trust, you can compare the effects of market volatilities on Invesco Agriculture and Listed Funds 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 Agriculture with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Agriculture and Listed Funds.
Diversification Opportunities for Invesco Agriculture and Listed Funds
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Invesco and Listed is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Agriculture Commodity and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust and Invesco Agriculture 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 Agriculture Commodity are associated (or correlated) with Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of Invesco Agriculture i.e., Invesco Agriculture and Listed Funds go up and down completely randomly.
Pair Corralation between Invesco Agriculture and Listed Funds
Given the investment horizon of 90 days Invesco Agriculture Commodity is expected to generate 1.29 times more return on investment than Listed Funds. However, Invesco Agriculture is 1.29 times more volatile than Listed Funds Trust. It trades about 0.08 of its potential returns per unit of risk. Listed Funds Trust is currently generating about -0.19 per unit of risk. If you would invest 3,763 in Invesco Agriculture Commodity on August 29, 2024 and sell it today you would earn a total of 101.00 from holding Invesco Agriculture Commodity or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Agriculture Commodity vs. Listed Funds Trust
Performance |
| Timeline |
| Invesco Agriculture |
| Listed Funds Trust |
Invesco Agriculture and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Agriculture and Listed Funds
The main advantage of trading using opposite Invesco Agriculture and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Agriculture position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' long position.| Invesco Agriculture vs. Listed Funds Trust | Invesco Agriculture vs. Invesco Electric Vehicle | Invesco Agriculture vs. Invesco Optimum Yield | Invesco Agriculture vs. First Trust Global |
| Listed Funds vs. Teucrium Agricultural | Listed Funds vs. Teucrium Sugar | Listed Funds vs. Teucrium Soybean | Listed Funds vs. Teucrium Wheat |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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