Correlation Between EA Series and Invesco SP
Can any of the company-specific risk be diversified away by investing in both EA Series 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 EA Series and Invesco SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and Invesco SP 500, you can compare the effects of market volatilities on EA Series 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 EA Series with a short position of Invesco SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and Invesco SP.
Diversification Opportunities for EA Series and Invesco SP
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between DRLL and Invesco is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding EA Series 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 EA Series 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 EA Series 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 EA Series i.e., EA Series and Invesco SP go up and down completely randomly.
Pair Corralation between EA Series and Invesco SP
Given the investment horizon of 90 days EA Series Trust is expected to under-perform the Invesco SP. In addition to that, EA Series is 1.69 times more volatile than Invesco SP 500. It trades about 0.0 of its total potential returns per unit of risk. Invesco SP 500 is currently generating about 0.12 per unit of volatility. If you would invest 7,385 in Invesco SP 500 on August 28, 2025 and sell it today you would earn a total of 393.00 from holding Invesco SP 500 or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Series Trust vs. Invesco SP 500
Performance |
| Timeline |
| EA Series Trust |
| Invesco SP 500 |
EA Series and Invesco SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and Invesco SP
The main advantage of trading using opposite EA Series and Invesco SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series 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.| EA Series vs. Ultimus Managers Trust | EA Series vs. American Beacon Select | EA Series vs. Direxion Daily SP | EA Series vs. Global X MLP |
| Invesco SP vs. Ultimus Managers Trust | Invesco SP vs. American Beacon Select | Invesco SP vs. Direxion Daily SP | Invesco SP vs. EA Series Trust |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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