Correlation Between Stringer Growth and Invesco Global
Can any of the company-specific risk be diversified away by investing in both Stringer Growth and Invesco 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 Stringer Growth and Invesco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stringer Growth Fund and Invesco Global Health, you can compare the effects of market volatilities on Stringer Growth and Invesco 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 Stringer Growth with a short position of Invesco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stringer Growth and Invesco Global.
Diversification Opportunities for Stringer Growth and Invesco Global
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stringer and Invesco is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Stringer Growth Fund and Invesco Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Global Health and Stringer Growth 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 Stringer Growth Fund are associated (or correlated) with Invesco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Global Health has no effect on the direction of Stringer Growth i.e., Stringer Growth and Invesco Global go up and down completely randomly.
Pair Corralation between Stringer Growth and Invesco Global
Assuming the 90 days horizon Stringer Growth Fund is expected to generate 0.61 times more return on investment than Invesco Global. However, Stringer Growth Fund is 1.64 times less risky than Invesco Global. It trades about 0.12 of its potential returns per unit of risk. Invesco Global Health is currently generating about -0.09 per unit of risk. If you would invest 1,261 in Stringer Growth Fund on August 29, 2024 and sell it today you would earn a total of 18.00 from holding Stringer Growth Fund or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stringer Growth Fund vs. Invesco Global Health
Performance |
| Timeline |
| Stringer Growth |
| Invesco Global Health |
Stringer Growth and Invesco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stringer Growth and Invesco Global
The main advantage of trading using opposite Stringer Growth and Invesco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stringer Growth position performs unexpectedly, Invesco 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 Invesco Global will offset losses from the drop in Invesco Global's long position.| Stringer Growth vs. Fidelity Equity Income Fund | Stringer Growth vs. Salient Mlp Energy | Stringer Growth vs. Fidelity New Millennium | Stringer Growth vs. Fidelity Capital Income |
| Invesco Global vs. T Rowe Price | Invesco Global vs. Pace High Yield | Invesco Global vs. Metropolitan West High | Invesco Global vs. Western Asset High |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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