Correlation Between Invesco Municipal and Marygold Companies
Can any of the company-specific risk be diversified away by investing in both Invesco Municipal and Marygold Companies 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 Municipal and Marygold Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Municipal Trust and Marygold Companies, you can compare the effects of market volatilities on Invesco Municipal and Marygold Companies 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 Municipal with a short position of Marygold Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Municipal and Marygold Companies.
Diversification Opportunities for Invesco Municipal and Marygold Companies
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Invesco and Marygold is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Municipal Trust and Marygold Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marygold Companies and Invesco Municipal 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 Municipal Trust are associated (or correlated) with Marygold Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marygold Companies has no effect on the direction of Invesco Municipal i.e., Invesco Municipal and Marygold Companies go up and down completely randomly.
Pair Corralation between Invesco Municipal and Marygold Companies
Considering the 90-day investment horizon Invesco Municipal is expected to generate 8.09 times less return on investment than Marygold Companies. But when comparing it to its historical volatility, Invesco Municipal Trust is 10.12 times less risky than Marygold Companies. It trades about 0.04 of its potential returns per unit of risk. Marygold Companies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 154.00 in Marygold Companies on September 3, 2024 and sell it today you would lose (3.00) from holding Marygold Companies or give up 1.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Municipal Trust vs. Marygold Companies
Performance |
| Timeline |
| Invesco Municipal Trust |
| Marygold Companies |
Invesco Municipal and Marygold Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Municipal and Marygold Companies
The main advantage of trading using opposite Invesco Municipal and Marygold Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Municipal position performs unexpectedly, Marygold Companies 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 Marygold Companies will offset losses from the drop in Marygold Companies' long position.| Invesco Municipal vs. Invesco Trust For | Invesco Municipal vs. Invesco Quality Municipal | Invesco Municipal vs. Invesco Municipal Opportunity | Invesco Municipal vs. MFS High Income |
| Marygold Companies vs. MFS Investment Grade | Marygold Companies vs. Invesco High Income | Marygold Companies vs. Eaton Vance National | Marygold Companies vs. Nuveen California Select |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |