Correlation Between Newage and Invesco DB
Can any of the company-specific risk be diversified away by investing in both Newage 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 Newage and Invesco DB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newage Inc and Invesco DB Commodity, you can compare the effects of market volatilities on Newage 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 Newage with a short position of Invesco DB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newage and Invesco DB.
Diversification Opportunities for Newage and Invesco DB
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newage and Invesco is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Newage Inc and Invesco DB Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco DB Commodity and Newage 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 Newage Inc 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 Commodity has no effect on the direction of Newage i.e., Newage and Invesco DB go up and down completely randomly.
Pair Corralation between Newage and Invesco DB
If you would invest 2,297 in Invesco DB Commodity on January 18, 2024 and sell it today you would earn a total of 74.00 from holding Invesco DB Commodity or generate 3.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.35% |
Values | Daily Returns |
Newage Inc vs. Invesco DB Commodity
Performance |
Timeline |
Newage Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Invesco DB Commodity |
Newage and Invesco DB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Newage and Invesco DB
The main advantage of trading using opposite Newage and Invesco DB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newage 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.Newage vs. Ambipar Emergency Response | Newage vs. Abcellera BiologicsInc | Newage vs. Montauk Renewables | Newage vs. GAMCO Global Gold |
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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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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