Correlation Between Invesco Small and Omni Small
Can any of the company-specific risk be diversified away by investing in both Invesco Small and Omni Small 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 Small and Omni Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Small Cap and Omni Small Cap Value, you can compare the effects of market volatilities on Invesco Small and Omni Small 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 Small with a short position of Omni Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Small and Omni Small.
Diversification Opportunities for Invesco Small and Omni Small
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Invesco and Omni is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Small Cap and Omni Small Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Small Cap and Invesco Small 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 Small Cap are associated (or correlated) with Omni Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omni Small Cap has no effect on the direction of Invesco Small i.e., Invesco Small and Omni Small go up and down completely randomly.
Pair Corralation between Invesco Small and Omni Small
Assuming the 90 days horizon Invesco Small Cap is expected to generate 2.78 times more return on investment than Omni Small. However, Invesco Small is 2.78 times more volatile than Omni Small Cap Value. It trades about 0.14 of its potential returns per unit of risk. Omni Small Cap Value is currently generating about 0.14 per unit of risk. If you would invest 695.00 in Invesco Small Cap on October 6, 2025 and sell it today you would earn a total of 279.00 from holding Invesco Small Cap or generate 40.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Small Cap vs. Omni Small Cap Value
Performance |
| Timeline |
| Invesco Small Cap |
| Omni Small Cap |
Invesco Small and Omni Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Small and Omni Small
The main advantage of trading using opposite Invesco Small and Omni Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Small position performs unexpectedly, Omni Small 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 Omni Small will offset losses from the drop in Omni Small's long position.| Invesco Small vs. Smallcap Fund Fka | Invesco Small vs. Pace Smallmedium Value | Invesco Small vs. Glg Intl Small | Invesco Small vs. Artisan Small Cap |
| Omni Small vs. Strategic Allocation Moderate | Omni Small vs. Bmo In Retirement Fund | Omni Small vs. Cornerstone Moderately Aggressive | Omni Small vs. Franklin Lifesmart Retirement |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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