Correlation Between Invesco Energy and Pro-blend(r) Conservative
Can any of the company-specific risk be diversified away by investing in both Invesco Energy and Pro-blend(r) Conservative 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 Energy and Pro-blend(r) Conservative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Energy Fund and Pro Blend Servative Term, you can compare the effects of market volatilities on Invesco Energy and Pro-blend(r) Conservative 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 Energy with a short position of Pro-blend(r) Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Energy and Pro-blend(r) Conservative.
Diversification Opportunities for Invesco Energy and Pro-blend(r) Conservative
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Invesco and Pro-blend(r) is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Energy Fund and Pro Blend Servative Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Conservative and Invesco Energy 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 Energy Fund are associated (or correlated) with Pro-blend(r) Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Conservative has no effect on the direction of Invesco Energy i.e., Invesco Energy and Pro-blend(r) Conservative go up and down completely randomly.
Pair Corralation between Invesco Energy and Pro-blend(r) Conservative
Assuming the 90 days horizon Invesco Energy Fund is expected to generate 4.24 times more return on investment than Pro-blend(r) Conservative. However, Invesco Energy is 4.24 times more volatile than Pro Blend Servative Term. It trades about 0.1 of its potential returns per unit of risk. Pro Blend Servative Term is currently generating about 0.18 per unit of risk. If you would invest 2,915 in Invesco Energy Fund on June 7, 2025 and sell it today you would earn a total of 182.00 from holding Invesco Energy Fund or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Energy Fund vs. Pro Blend Servative Term
Performance |
| Timeline |
| Invesco Energy |
| Pro-blend(r) Conservative |
Invesco Energy and Pro-blend(r) Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Energy and Pro-blend(r) Conservative
The main advantage of trading using opposite Invesco Energy and Pro-blend(r) Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Energy position performs unexpectedly, Pro-blend(r) Conservative 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 Pro-blend(r) Conservative will offset losses from the drop in Pro-blend(r) Conservative's long position.| Invesco Energy vs. Invesco Asia Pacific | Invesco Energy vs. Invesco Developing Markets | Invesco Energy vs. Invesco Global Health | Invesco Energy vs. Invesco Dividend Income |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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