Correlation Between Abrdn Physical and Invesco DB
Can any of the company-specific risk be diversified away by investing in both Abrdn Physical and Invesco DB 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 Abrdn Physical and Invesco DB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between abrdn Physical Gold and Invesco DB Precious, you can compare the effects of market volatilities on Abrdn Physical and Invesco DB 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 Abrdn Physical with a short position of Invesco DB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Physical and Invesco DB.
Diversification Opportunities for Abrdn Physical and Invesco DB
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Abrdn and Invesco is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Physical Gold and Invesco DB Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco DB Precious and Abrdn Physical 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 abrdn Physical Gold are associated (or correlated) with Invesco DB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco DB Precious has no effect on the direction of Abrdn Physical i.e., Abrdn Physical and Invesco DB go up and down completely randomly.
Pair Corralation between Abrdn Physical and Invesco DB
Given the investment horizon of 90 days Abrdn Physical is expected to generate 1.59 times less return on investment than Invesco DB. But when comparing it to its historical volatility, abrdn Physical Gold is 1.21 times less risky than Invesco DB. It trades about 0.1 of its potential returns per unit of risk. Invesco DB Precious is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 8,918 in Invesco DB Precious on October 5, 2025 and sell it today you would earn a total of 1,363 from holding Invesco DB Precious or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
abrdn Physical Gold vs. Invesco DB Precious
Performance |
| Timeline |
| abrdn Physical Gold |
| Invesco DB Precious |
Abrdn Physical and Invesco DB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Physical and Invesco DB
The main advantage of trading using opposite Abrdn Physical and Invesco DB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Physical position performs unexpectedly, Invesco DB 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 DB will offset losses from the drop in Invesco DB's long position.| Abrdn Physical vs. iShares Gold Trust | Abrdn Physical vs. iShares Ultra Short Term | Abrdn Physical vs. Goldman Sachs Access | Abrdn Physical vs. Dimensional ETF Trust |
| Invesco DB vs. First Trust Dow | Invesco DB vs. First Trust Japan | Invesco DB vs. iShares MSCI Brazil | Invesco DB vs. Tidal ETF 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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