Correlation Between Invesco Advantage and Cion Investment
Can any of the company-specific risk be diversified away by investing in both Invesco Advantage and Cion Investment 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 Cion Investment 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 Cion Investment Corp, you can compare the effects of market volatilities on Invesco Advantage and Cion Investment 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 Cion Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Advantage and Cion Investment.
Diversification Opportunities for Invesco Advantage and Cion Investment
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Invesco and Cion is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Advantage MIT and Cion Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cion Investment Corp 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 Cion Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cion Investment Corp has no effect on the direction of Invesco Advantage i.e., Invesco Advantage and Cion Investment go up and down completely randomly.
Pair Corralation between Invesco Advantage and Cion Investment
Considering the 90-day investment horizon Invesco Advantage MIT is expected to generate 0.54 times more return on investment than Cion Investment. However, Invesco Advantage MIT is 1.85 times less risky than Cion Investment. It trades about 0.2 of its potential returns per unit of risk. Cion Investment Corp is currently generating about 0.01 per unit of risk. If you would invest 891.00 in Invesco Advantage MIT on August 31, 2024 and sell it today you would earn a total of 25.00 from holding Invesco Advantage MIT or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Invesco Advantage MIT vs. Cion Investment Corp
Performance |
| Timeline |
| Invesco Advantage MIT |
| Cion Investment Corp |
Invesco Advantage and Cion Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Advantage and Cion Investment
The main advantage of trading using opposite Invesco Advantage and Cion Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Advantage position performs unexpectedly, Cion Investment 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 Cion Investment will offset losses from the drop in Cion Investment'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 |
| Cion Investment vs. Federated Premier Municipal | Cion Investment vs. Blackrock Muniyield | Cion Investment vs. Diamond Hill Investment | Cion Investment vs. NXG NextGen Infrastructure |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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