Correlation Between IShares Energy and Invesco High
Can any of the company-specific risk be diversified away by investing in both IShares Energy and Invesco High 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 IShares Energy and Invesco High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Energy ETF and Invesco High Yield, you can compare the effects of market volatilities on IShares Energy and Invesco High 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 IShares Energy with a short position of Invesco High. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Energy and Invesco High.
Diversification Opportunities for IShares Energy and Invesco High
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Invesco is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding iShares Energy ETF and Invesco High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco High Yield and IShares 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 iShares Energy ETF are associated (or correlated) with Invesco High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco High Yield has no effect on the direction of IShares Energy i.e., IShares Energy and Invesco High go up and down completely randomly.
Pair Corralation between IShares Energy and Invesco High
Considering the 90-day investment horizon iShares Energy ETF is expected to generate 1.2 times more return on investment than Invesco High. However, IShares Energy is 1.2 times more volatile than Invesco High Yield. It trades about 0.04 of its potential returns per unit of risk. Invesco High Yield is currently generating about -0.05 per unit of risk. If you would invest 4,708 in iShares Energy ETF on September 10, 2025 and sell it today you would earn a total of 119.00 from holding iShares Energy ETF or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Energy ETF vs. Invesco High Yield
Performance |
| Timeline |
| iShares Energy ETF |
| Invesco High Yield |
IShares Energy and Invesco High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Energy and Invesco High
The main advantage of trading using opposite IShares Energy and Invesco High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Energy position performs unexpectedly, Invesco High 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 High will offset losses from the drop in Invesco High's long position.| IShares Energy vs. iShares Micro Cap ETF | IShares Energy vs. iShares Asia 50 | IShares Energy vs. iShares Emerging Markets | IShares Energy vs. iShares MSCI India |
| Invesco High vs. Invesco SP Global | Invesco High vs. iShares Micro Cap ETF | Invesco High vs. iShares Energy ETF | Invesco High vs. OShares Small Cap Quality |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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