Correlation Between Invesco Financial and Listed Funds
Can any of the company-specific risk be diversified away by investing in both Invesco Financial 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 Financial 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 Financial Preferred and Listed Funds Trust, you can compare the effects of market volatilities on Invesco Financial 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 Financial with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Financial and Listed Funds.
Diversification Opportunities for Invesco Financial and Listed Funds
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Invesco and Listed is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Financial Preferred 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 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 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 Financial i.e., Invesco Financial and Listed Funds go up and down completely randomly.
Pair Corralation between Invesco Financial and Listed Funds
Considering the 90-day investment horizon Invesco Financial Preferred is expected to generate 0.89 times more return on investment than Listed Funds. However, Invesco Financial Preferred is 1.12 times less risky than Listed Funds. It trades about 0.03 of its potential returns per unit of risk. Listed Funds Trust is currently generating about -0.03 per unit of risk. If you would invest 1,341 in Invesco Financial Preferred on August 26, 2024 and sell it today you would earn a total of 172.00 from holding Invesco Financial Preferred or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Financial Preferred vs. Listed Funds Trust
Performance |
| Timeline |
| Invesco Financial |
| Listed Funds Trust |
Invesco Financial and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Financial and Listed Funds
The main advantage of trading using opposite Invesco Financial and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Financial 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 Financial vs. ETF Series Solutions | Invesco Financial vs. Aquagold International | Invesco Financial vs. Morningstar Unconstrained Allocation | Invesco Financial vs. High Yield Municipal Fund |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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