Correlation Between Dimensional ETF and Invesco SP
Can any of the company-specific risk be diversified away by investing in both Dimensional ETF and Invesco SP 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 Dimensional ETF and Invesco SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional ETF Trust and Invesco SP 500, you can compare the effects of market volatilities on Dimensional ETF and Invesco SP 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 Dimensional ETF with a short position of Invesco SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional ETF and Invesco SP.
Diversification Opportunities for Dimensional ETF and Invesco SP
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dimensional and Invesco is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional ETF Trust and Invesco SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco SP 500 and Dimensional ETF 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 Dimensional ETF Trust are associated (or correlated) with Invesco SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco SP 500 has no effect on the direction of Dimensional ETF i.e., Dimensional ETF and Invesco SP go up and down completely randomly.
Pair Corralation between Dimensional ETF and Invesco SP
Given the investment horizon of 90 days Dimensional ETF Trust is expected to generate 1.45 times more return on investment than Invesco SP. However, Dimensional ETF is 1.45 times more volatile than Invesco SP 500. It trades about 0.25 of its potential returns per unit of risk. Invesco SP 500 is currently generating about 0.12 per unit of risk. If you would invest 3,263 in Dimensional ETF Trust on October 6, 2025 and sell it today you would earn a total of 120.00 from holding Dimensional ETF Trust or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional ETF Trust vs. Invesco SP 500
Performance |
| Timeline |
| Dimensional ETF Trust |
| Invesco SP 500 |
Dimensional ETF and Invesco SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional ETF and Invesco SP
The main advantage of trading using opposite Dimensional ETF and Invesco SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional ETF position performs unexpectedly, Invesco SP 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 SP will offset losses from the drop in Invesco SP's long position.| Dimensional ETF vs. Dimensional Emerging Core | Dimensional ETF vs. iShares SP Small Cap | Dimensional ETF vs. iShares MSCI ACWI | Dimensional ETF vs. iShares Currency Hedged |
| Invesco SP vs. iShares MSCI World | Invesco SP vs. iShares MSCI ACWI | Invesco SP vs. iShares Core MSCI | Invesco SP vs. SPDR Portfolio SP |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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