Correlation Between Invesco Financial and Global X
Can any of the company-specific risk be diversified away by investing in both Invesco Financial and Global X 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 Financial and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Financial Preferred and Global X Preferred, you can compare the effects of market volatilities on Invesco Financial and Global X 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 Financial with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Financial and Global X.
Diversification Opportunities for Invesco Financial and Global X
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Invesco and Global is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Financial Preferred and Global X Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Preferred and Invesco Financial 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 Financial Preferred are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Preferred has no effect on the direction of Invesco Financial i.e., Invesco Financial and Global X go up and down completely randomly.
Pair Corralation between Invesco Financial and Global X
Considering the 90-day investment horizon Invesco Financial Preferred is expected to under-perform the Global X. In addition to that, Invesco Financial is 1.05 times more volatile than Global X Preferred. It trades about -0.34 of its total potential returns per unit of risk. Global X Preferred is currently generating about -0.34 per unit of volatility. If you would invest 2,015 in Global X Preferred on January 20, 2024 and sell it today you would lose (97.00) from holding Global X Preferred or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Financial Preferred vs. Global X Preferred
Performance |
| Timeline |
| Invesco Financial |
| Global X Preferred |
Invesco Financial and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Financial and Global X
The main advantage of trading using opposite Invesco Financial and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Financial position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Invesco Financial vs. XAI Octagon Floating | Invesco Financial vs. InfraCap MLP ETF | Invesco Financial vs. VanEck BDC Income | Invesco Financial vs. Reaves Utility If |
| Global X vs. VanEck Preferred Securities | Global X vs. Global X SuperIncome | Global X vs. Virtus InfraCap Preferred | Global X vs. SPDR ICE Preferred |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |