Correlation Between Invesco SP and CONSUMERS
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By analyzing existing cross correlation between Invesco SP SmallCap and CONSUMERS ENERGY 325, you can compare the effects of market volatilities on Invesco SP and CONSUMERS 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 SP with a short position of CONSUMERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco SP and CONSUMERS.
Diversification Opportunities for Invesco SP and CONSUMERS
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Invesco and CONSUMERS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Invesco SP SmallCap and CONSUMERS ENERGY 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSUMERS ENERGY 325 and Invesco SP 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 SP SmallCap are associated (or correlated) with CONSUMERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSUMERS ENERGY 325 has no effect on the direction of Invesco SP i.e., Invesco SP and CONSUMERS go up and down completely randomly.
Pair Corralation between Invesco SP and CONSUMERS
Given the investment horizon of 90 days Invesco SP SmallCap is expected to under-perform the CONSUMERS. But the etf apears to be less risky and, when comparing its historical volatility, Invesco SP SmallCap is 1.24 times less risky than CONSUMERS. The etf trades about -0.17 of its potential returns per unit of risk. The CONSUMERS ENERGY 325 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,222 in CONSUMERS ENERGY 325 on November 28, 2024 and sell it today you would earn a total of 25.00 from holding CONSUMERS ENERGY 325 or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 33.33% |
| Values | Daily Returns |
Invesco SP SmallCap vs. CONSUMERS ENERGY 325
Performance |
| Timeline |
| Invesco SP SmallCap |
| CONSUMERS ENERGY 325 |
Invesco SP and CONSUMERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco SP and CONSUMERS
The main advantage of trading using opposite Invesco SP and CONSUMERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco SP position performs unexpectedly, CONSUMERS 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 CONSUMERS will offset losses from the drop in CONSUMERS's long position.| Invesco SP vs. Invesco SP MidCap | Invesco SP vs. Invesco SP International | Invesco SP vs. SPDR SSGA Small | Invesco SP vs. iShares MSCI EAFE |
| CONSUMERS vs. Zhihu Inc ADR | CONSUMERS vs. KVH Industries | CONSUMERS vs. Ryanair Holdings PLC | CONSUMERS vs. Westinghouse Air Brake |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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