Correlation Between Invesco Global and ProShares Global
Can any of the company-specific risk be diversified away by investing in both Invesco Global and ProShares Global 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 Global and ProShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Global Listed and ProShares Global Listed, you can compare the effects of market volatilities on Invesco Global and ProShares Global 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 Global with a short position of ProShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Global and ProShares Global.
Diversification Opportunities for Invesco Global and ProShares Global
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Invesco and ProShares is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Global Listed and ProShares Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Global Listed and Invesco Global 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 Global Listed are associated (or correlated) with ProShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Global Listed has no effect on the direction of Invesco Global i.e., Invesco Global and ProShares Global go up and down completely randomly.
Pair Corralation between Invesco Global and ProShares Global
Considering the 90-day investment horizon Invesco Global is expected to generate 1.16 times less return on investment than ProShares Global. In addition to that, Invesco Global is 1.76 times more volatile than ProShares Global Listed. It trades about 0.16 of its total potential returns per unit of risk. ProShares Global Listed is currently generating about 0.32 per unit of volatility. If you would invest 2,816 in ProShares Global Listed on November 18, 2024 and sell it today you would earn a total of 108.00 from holding ProShares Global Listed or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Global Listed vs. ProShares Global Listed
Performance |
| Timeline |
| Invesco Global Listed |
| ProShares Global Listed |
Invesco Global and ProShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Global and ProShares Global
The main advantage of trading using opposite Invesco Global and ProShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Global position performs unexpectedly, ProShares Global 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 ProShares Global will offset losses from the drop in ProShares Global's long position.| Invesco Global vs. ProShares Global Listed | Invesco Global vs. Invesco Dynamic Building | Invesco Global vs. Invesco Dynamic Large |
| ProShares Global vs. Invesco Global Listed | ProShares Global vs. ProShares Merger ETF | ProShares Global vs. VanEck BDC Income | ProShares Global vs. ProShares Hedge Replication |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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