Correlation Between Invesco Municipal and Oppenheimer Roc
Can any of the company-specific risk be diversified away by investing in both Invesco Municipal and Oppenheimer Roc 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 Oppenheimer Roc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Municipal Income and Oppenheimer Roc Penn, you can compare the effects of market volatilities on Invesco Municipal and Oppenheimer Roc 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 Oppenheimer Roc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Municipal and Oppenheimer Roc.
Diversification Opportunities for Invesco Municipal and Oppenheimer Roc
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Invesco and Oppenheimer is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Municipal Income and Oppenheimer Roc Penn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Roc Penn 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 Income are associated (or correlated) with Oppenheimer Roc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Roc Penn has no effect on the direction of Invesco Municipal i.e., Invesco Municipal and Oppenheimer Roc go up and down completely randomly.
Pair Corralation between Invesco Municipal and Oppenheimer Roc
Assuming the 90 days horizon Invesco Municipal Income is expected to generate 1.11 times more return on investment than Oppenheimer Roc. However, Invesco Municipal is 1.11 times more volatile than Oppenheimer Roc Penn. It trades about 0.13 of its potential returns per unit of risk. Oppenheimer Roc Penn is currently generating about 0.12 per unit of risk. If you would invest 1,198 in Invesco Municipal Income on August 27, 2024 and sell it today you would earn a total of 12.00 from holding Invesco Municipal Income or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Municipal Income vs. Oppenheimer Roc Penn
Performance |
| Timeline |
| Invesco Municipal Income |
| Oppenheimer Roc Penn |
Invesco Municipal and Oppenheimer Roc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Municipal and Oppenheimer Roc
The main advantage of trading using opposite Invesco Municipal and Oppenheimer Roc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Municipal position performs unexpectedly, Oppenheimer Roc 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 Oppenheimer Roc will offset losses from the drop in Oppenheimer Roc's long position.| Invesco Municipal vs. Tiaa Cref Lifestyle Conservative | Invesco Municipal vs. Pimco Diversified Income | Invesco Municipal vs. American Funds Conservative | Invesco Municipal vs. Western Asset Diversified |
| Oppenheimer Roc vs. Invesco Municipal Income | Oppenheimer Roc vs. Invesco Municipal Income | Oppenheimer Roc vs. Invesco Municipal Income | Oppenheimer Roc vs. Oppenheimer Rising Dividends |
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
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |