Correlation Between Invesco BulletShares and Highland Capital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Invesco BulletShares and Highland Capital 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 BulletShares and Highland Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco BulletShares 2025 and Highland Capital Management, you can compare the effects of market volatilities on Invesco BulletShares and Highland Capital 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 BulletShares with a short position of Highland Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco BulletShares and Highland Capital.

Diversification Opportunities for Invesco BulletShares and Highland Capital

0.75
  Correlation Coefficient

Poor diversification

The 3 months correlation between Invesco and Highland is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Invesco BulletShares 2025 and Highland Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Capital Man and Invesco BulletShares 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 BulletShares 2025 are associated (or correlated) with Highland Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Capital Man has no effect on the direction of Invesco BulletShares i.e., Invesco BulletShares and Highland Capital go up and down completely randomly.

Pair Corralation between Invesco BulletShares and Highland Capital

If you would invest  2,271  in Invesco BulletShares 2025 on December 29, 2023 and sell it today you would earn a total of  24.00  from holding Invesco BulletShares 2025 or generate 1.06% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy4.35%
ValuesDaily Returns

Invesco BulletShares 2025  vs.  Highland Capital Management

 Performance 
       Timeline  
Invesco BulletShares 2025 

Risk-Adjusted Performance

23 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Invesco BulletShares 2025 are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable forward-looking indicators, Invesco BulletShares is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
Highland Capital Man 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Highland Capital Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Highland Capital is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Invesco BulletShares and Highland Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Invesco BulletShares and Highland Capital

The main advantage of trading using opposite Invesco BulletShares and Highland Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco BulletShares position performs unexpectedly, Highland Capital 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 Highland Capital will offset losses from the drop in Highland Capital's long position.
The idea behind Invesco BulletShares 2025 and Highland Capital Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes