Correlation Between Invesco Physical and FuelCell Energy
Can any of the company-specific risk be diversified away by investing in both Invesco Physical and FuelCell Energy 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 Physical and FuelCell Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Physical Silver and FuelCell Energy, you can compare the effects of market volatilities on Invesco Physical and FuelCell Energy 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 Physical with a short position of FuelCell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Physical and FuelCell Energy.
Diversification Opportunities for Invesco Physical and FuelCell Energy
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invesco and FuelCell is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Physical Silver and FuelCell Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelCell Energy and Invesco Physical 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 Physical Silver are associated (or correlated) with FuelCell Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelCell Energy has no effect on the direction of Invesco Physical i.e., Invesco Physical and FuelCell Energy go up and down completely randomly.
Pair Corralation between Invesco Physical and FuelCell Energy
Assuming the 90 days trading horizon Invesco Physical Silver is expected to generate 0.38 times more return on investment than FuelCell Energy. However, Invesco Physical Silver is 2.63 times less risky than FuelCell Energy. It trades about 0.14 of its potential returns per unit of risk. FuelCell Energy is currently generating about -0.01 per unit of risk. If you would invest 2,886 in Invesco Physical Silver on November 28, 2024 and sell it today you would earn a total of 107.00 from holding Invesco Physical Silver or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 27.27% |
| Values | Daily Returns |
Invesco Physical Silver vs. FuelCell Energy
Performance |
| Timeline |
| Invesco Physical Silver |
| FuelCell Energy |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Invesco Physical and FuelCell Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Physical and FuelCell Energy
The main advantage of trading using opposite Invesco Physical and FuelCell Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Physical position performs unexpectedly, FuelCell Energy 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 FuelCell Energy will offset losses from the drop in FuelCell Energy's long position.| Invesco Physical vs. Southwest Airlines Co | Invesco Physical vs. AcadeMedia AB | Invesco Physical vs. Cellnex Telecom SA | Invesco Physical vs. mobilezone holding AG |
| FuelCell Energy vs. Southwest Airlines Co | FuelCell Energy vs. Alfa Financial Software | FuelCell Energy vs. Scandic Hotels Group | FuelCell Energy vs. Air Products Chemicals |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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