Correlation Between Invesco Aerospace and Clockwise Capital

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Can any of the company-specific risk be diversified away by investing in both Invesco Aerospace and Clockwise Capital 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 Aerospace and Clockwise Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Aerospace Defense and Clockwise Capital, you can compare the effects of market volatilities on Invesco Aerospace and Clockwise Capital 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 Aerospace with a short position of Clockwise Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Aerospace and Clockwise Capital.

Diversification Opportunities for Invesco Aerospace and Clockwise Capital

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Invesco and Clockwise is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Aerospace Defense and Clockwise Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clockwise Capital and Invesco Aerospace 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 Aerospace Defense are associated (or correlated) with Clockwise Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clockwise Capital has no effect on the direction of Invesco Aerospace i.e., Invesco Aerospace and Clockwise Capital go up and down completely randomly.

Pair Corralation between Invesco Aerospace and Clockwise Capital

If you would invest  14,755  in Invesco Aerospace Defense on December 1, 2025 and sell it today you would earn a total of  3,352  from holding Invesco Aerospace Defense or generate 22.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy1.61%
ValuesDaily Returns

Invesco Aerospace Defense  vs.  Clockwise Capital

 Performance 
       Timeline  
Invesco Aerospace Defense 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Aerospace Defense are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Invesco Aerospace sustained solid returns over the last few months and may actually be approaching a breakup point.
Clockwise Capital 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Clockwise Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Clockwise Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Invesco Aerospace and Clockwise Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Invesco Aerospace and Clockwise Capital

The main advantage of trading using opposite Invesco Aerospace and Clockwise Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Aerospace position performs unexpectedly, Clockwise Capital 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 Clockwise Capital will offset losses from the drop in Clockwise Capital's long position.
The idea behind Invesco Aerospace Defense and Clockwise Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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