Correlation Between Invesco SP and SPDR Kensho
Can any of the company-specific risk be diversified away by investing in both Invesco SP and SPDR Kensho 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 SP and SPDR Kensho into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco SP International and SPDR Kensho Intelligent, you can compare the effects of market volatilities on Invesco SP and SPDR Kensho 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 SPDR Kensho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco SP and SPDR Kensho.
Diversification Opportunities for Invesco SP and SPDR Kensho
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Invesco and SPDR is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Invesco SP International and SPDR Kensho Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Kensho Intelligent 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 International are associated (or correlated) with SPDR Kensho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Kensho Intelligent has no effect on the direction of Invesco SP i.e., Invesco SP and SPDR Kensho go up and down completely randomly.
Pair Corralation between Invesco SP and SPDR Kensho
Given the investment horizon of 90 days Invesco SP is expected to generate 4.53 times less return on investment than SPDR Kensho. But when comparing it to its historical volatility, Invesco SP International is 1.76 times less risky than SPDR Kensho. It trades about 0.1 of its potential returns per unit of risk. SPDR Kensho Intelligent is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3,656 in SPDR Kensho Intelligent on July 13, 2025 and sell it today you would earn a total of 760.00 from holding SPDR Kensho Intelligent or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco SP International vs. SPDR Kensho Intelligent
Performance |
| Timeline |
| Invesco SP International |
| SPDR Kensho Intelligent |
Invesco SP and SPDR Kensho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco SP and SPDR Kensho
The main advantage of trading using opposite Invesco SP and SPDR Kensho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco SP position performs unexpectedly, SPDR Kensho 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 SPDR Kensho will offset losses from the drop in SPDR Kensho's long position.| Invesco SP vs. Invesco SP International | Invesco SP vs. iShares MSCI Intl | Invesco SP vs. Invesco SP Emerging | Invesco SP vs. Invesco SP 500 |
| SPDR Kensho vs. SPDR STOXX Europe | SPDR Kensho vs. SPDR Bloomberg Barclays | SPDR Kensho vs. SPDR Kensho Future | SPDR Kensho vs. SPDR SP Kensho |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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