Correlation Between Invesco Municipal and Cion Investment
Can any of the company-specific risk be diversified away by investing in both Invesco Municipal 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 Municipal 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 Municipal Opportunity and Cion Investment Corp, you can compare the effects of market volatilities on Invesco Municipal 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 Municipal with a short position of Cion Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Municipal and Cion Investment.
Diversification Opportunities for Invesco Municipal and Cion Investment
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Invesco and Cion is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Municipal Opportunity 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 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 Opportunity 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 Municipal i.e., Invesco Municipal and Cion Investment go up and down completely randomly.
Pair Corralation between Invesco Municipal and Cion Investment
Considering the 90-day investment horizon Invesco Municipal Opportunity is expected to generate 0.6 times more return on investment than Cion Investment. However, Invesco Municipal Opportunity is 1.68 times less risky than Cion Investment. It trades about 0.02 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 964.00 in Invesco Municipal Opportunity on October 26, 2024 and sell it today you would earn a total of 7.00 from holding Invesco Municipal Opportunity or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Municipal Opportunity vs. Cion Investment Corp
Performance |
| Timeline |
| Invesco Municipal |
| Cion Investment Corp |
Invesco Municipal and Cion Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Municipal and Cion Investment
The main advantage of trading using opposite Invesco Municipal and Cion Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Municipal 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 Municipal vs. Invesco Quality Municipal | Invesco Municipal vs. Invesco Advantage MIT | Invesco Municipal vs. Invesco Municipal Trust | Invesco Municipal vs. Invesco California Value |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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