Correlation Between Counterpoint Tactical and Invesco Select
Can any of the company-specific risk be diversified away by investing in both Counterpoint Tactical and Invesco Select 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 Counterpoint Tactical and Invesco Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Counterpoint Tactical Municipal and Invesco Select Risk, you can compare the effects of market volatilities on Counterpoint Tactical and Invesco Select 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 Counterpoint Tactical with a short position of Invesco Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Counterpoint Tactical and Invesco Select.
Diversification Opportunities for Counterpoint Tactical and Invesco Select
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Counterpoint and Invesco is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Counterpoint Tactical Municipa and Invesco Select Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Select Risk and Counterpoint Tactical 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 Counterpoint Tactical Municipal are associated (or correlated) with Invesco Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Select Risk has no effect on the direction of Counterpoint Tactical i.e., Counterpoint Tactical and Invesco Select go up and down completely randomly.
Pair Corralation between Counterpoint Tactical and Invesco Select
Assuming the 90 days horizon Counterpoint Tactical Municipal is expected to generate 0.48 times more return on investment than Invesco Select. However, Counterpoint Tactical Municipal is 2.11 times less risky than Invesco Select. It trades about 0.07 of its potential returns per unit of risk. Invesco Select Risk is currently generating about 0.01 per unit of risk. If you would invest 1,071 in Counterpoint Tactical Municipal on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Counterpoint Tactical Municipal or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Counterpoint Tactical Municipa vs. Invesco Select Risk
Performance |
| Timeline |
| Counterpoint Tactical |
| Invesco Select Risk |
Counterpoint Tactical and Invesco Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Counterpoint Tactical and Invesco Select
The main advantage of trading using opposite Counterpoint Tactical and Invesco Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Counterpoint Tactical position performs unexpectedly, Invesco Select 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 Select will offset losses from the drop in Invesco Select's long position.The idea behind Counterpoint Tactical Municipal and Invesco Select Risk 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.
| Invesco Select vs. Invesco Municipal Income | Invesco Select vs. Invesco Municipal Income | Invesco Select vs. Invesco Municipal Income | Invesco Select vs. Aim Investment Securities |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |