Correlation Between Invesco Physical and Intermediate Capital
Can any of the company-specific risk be diversified away by investing in both Invesco Physical and Intermediate 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 Physical and Intermediate Capital 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 Intermediate Capital Group, you can compare the effects of market volatilities on Invesco Physical and Intermediate 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 Physical with a short position of Intermediate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Physical and Intermediate Capital.
Diversification Opportunities for Invesco Physical and Intermediate Capital
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Invesco and Intermediate is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Physical Silver and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital 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 Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of Invesco Physical i.e., Invesco Physical and Intermediate Capital go up and down completely randomly.
Pair Corralation between Invesco Physical and Intermediate Capital
Assuming the 90 days trading horizon Invesco Physical Silver is expected to generate 0.64 times more return on investment than Intermediate Capital. However, Invesco Physical Silver is 1.57 times less risky than Intermediate Capital. It trades about -0.04 of its potential returns per unit of risk. Intermediate Capital Group is currently generating about -0.19 per unit of risk. If you would invest 3,150 in Invesco Physical Silver on January 20, 2025 and sell it today you would lose (77.00) from holding Invesco Physical Silver or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Physical Silver vs. Intermediate Capital Group
Performance |
| Timeline |
| Invesco Physical Silver |
| Intermediate Capital |
Invesco Physical and Intermediate Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Physical and Intermediate Capital
The main advantage of trading using opposite Invesco Physical and Intermediate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Physical position performs unexpectedly, Intermediate 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 Intermediate Capital will offset losses from the drop in Intermediate Capital's long position.| Invesco Physical vs. Invesco Physical Gold | Invesco Physical vs. Xtrackers Physical Gold | Invesco Physical vs. Invesco Physical Gold | Invesco Physical vs. Amundi Physical Gold |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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