Correlation Between Invesco Advantage and Auburn Bancorp
Can any of the company-specific risk be diversified away by investing in both Invesco Advantage and Auburn Bancorp 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 Advantage and Auburn Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Advantage MIT and Auburn Bancorp, you can compare the effects of market volatilities on Invesco Advantage and Auburn Bancorp 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 Advantage with a short position of Auburn Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Advantage and Auburn Bancorp.
Diversification Opportunities for Invesco Advantage and Auburn Bancorp
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Invesco and Auburn is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Advantage MIT and Auburn Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auburn Bancorp and Invesco Advantage 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 Advantage MIT are associated (or correlated) with Auburn Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auburn Bancorp has no effect on the direction of Invesco Advantage i.e., Invesco Advantage and Auburn Bancorp go up and down completely randomly.
Pair Corralation between Invesco Advantage and Auburn Bancorp
Considering the 90-day investment horizon Invesco Advantage MIT is expected to generate 0.64 times more return on investment than Auburn Bancorp. However, Invesco Advantage MIT is 1.57 times less risky than Auburn Bancorp. It trades about 0.14 of its potential returns per unit of risk. Auburn Bancorp is currently generating about -0.03 per unit of risk. If you would invest 701.00 in Invesco Advantage MIT on September 4, 2024 and sell it today you would earn a total of 222.00 from holding Invesco Advantage MIT or generate 31.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Invesco Advantage MIT vs. Auburn Bancorp
Performance |
| Timeline |
| Invesco Advantage MIT |
| Auburn Bancorp |
Invesco Advantage and Auburn Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Advantage and Auburn Bancorp
The main advantage of trading using opposite Invesco Advantage and Auburn Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Advantage position performs unexpectedly, Auburn Bancorp 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 Auburn Bancorp will offset losses from the drop in Auburn Bancorp's long position.| Invesco Advantage vs. Invesco Quality Municipal | Invesco Advantage vs. Invesco California Value | Invesco Advantage vs. DWS Municipal Income | Invesco Advantage vs. Invesco Trust For |
| Auburn Bancorp vs. Andover Bancorp | Auburn Bancorp vs. Aozora Bank Ltd | Auburn Bancorp vs. Absa Group Limited |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |