Correlation Between Invesco Financial and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Invesco Financial and Natixis ETF 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 Financial and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Financial Preferred and Natixis ETF Trust, you can compare the effects of market volatilities on Invesco Financial and Natixis ETF 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 Financial with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Financial and Natixis ETF.
Diversification Opportunities for Invesco Financial and Natixis ETF
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Invesco and Natixis is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Financial Preferred and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF Trust and Invesco Financial 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 Financial Preferred are associated (or correlated) with Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of Invesco Financial i.e., Invesco Financial and Natixis ETF go up and down completely randomly.
Pair Corralation between Invesco Financial and Natixis ETF
Considering the 90-day investment horizon Invesco Financial Preferred is expected to under-perform the Natixis ETF. But the etf apears to be less risky and, when comparing its historical volatility, Invesco Financial Preferred is 1.93 times less risky than Natixis ETF. The etf trades about -0.08 of its potential returns per unit of risk. The Natixis ETF Trust is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 3,895 in Natixis ETF Trust on September 13, 2024 and sell it today you would earn a total of 174.00 from holding Natixis ETF Trust or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Invesco Financial Preferred vs. Natixis ETF Trust
Performance |
| Timeline |
| Invesco Financial |
| Natixis ETF Trust |
Invesco Financial and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Financial and Natixis ETF
The main advantage of trading using opposite Invesco Financial and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Financial position performs unexpectedly, Natixis ETF 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 Natixis ETF will offset losses from the drop in Natixis ETF's long position.| Invesco Financial vs. Invesco Preferred ETF | Invesco Financial vs. iShares Preferred and | Invesco Financial vs. SPDR ICE Preferred | Invesco Financial vs. VanEck Preferred Securities |
| Natixis ETF vs. iShares Factors Growth | Natixis ETF vs. Absolute Core Strategy | Natixis ETF vs. iShares ESG Advanced | Natixis ETF vs. PIMCO RAFI Dynamic |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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