Correlation Between WisdomTree Managed and Invesco Managed
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed and Invesco Managed 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 WisdomTree Managed and Invesco Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Managed Futures and Invesco Managed Futures, you can compare the effects of market volatilities on WisdomTree Managed and Invesco Managed 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 WisdomTree Managed with a short position of Invesco Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and Invesco Managed.
Diversification Opportunities for WisdomTree Managed and Invesco Managed
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and Invesco is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and Invesco Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Managed Futures and WisdomTree Managed 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 WisdomTree Managed Futures are associated (or correlated) with Invesco Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Managed Futures has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and Invesco Managed go up and down completely randomly.
Pair Corralation between WisdomTree Managed and Invesco Managed
Given the investment horizon of 90 days WisdomTree Managed is expected to generate 2.99 times less return on investment than Invesco Managed. But when comparing it to its historical volatility, WisdomTree Managed Futures is 1.32 times less risky than Invesco Managed. It trades about 0.1 of its potential returns per unit of risk. Invesco Managed Futures is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 4,377 in Invesco Managed Futures on November 1, 2025 and sell it today you would earn a total of 470.00 from holding Invesco Managed Futures or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. Invesco Managed Futures
Performance |
| Timeline |
| WisdomTree Managed |
| Invesco Managed Futures |
WisdomTree Managed and Invesco Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and Invesco Managed
The main advantage of trading using opposite WisdomTree Managed and Invesco Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed position performs unexpectedly, Invesco Managed 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 Invesco Managed will offset losses from the drop in Invesco Managed's long position.| WisdomTree Managed vs. Elevation Series Trust | WisdomTree Managed vs. Exchange Traded Concepts | WisdomTree Managed vs. Innovator MSCI EAFE | WisdomTree Managed vs. VanEck Inflation Allocation |
| Invesco Managed vs. DGA Core Plus | Invesco Managed vs. Federated Hermes ETF | Invesco Managed vs. ProShares Merger ETF | Invesco Managed vs. Even Herd Long |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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