Correlation Between Invesco QQQ and Abrdn Bloomberg
Can any of the company-specific risk be diversified away by investing in both Invesco QQQ and Abrdn Bloomberg 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 QQQ and Abrdn Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco QQQ Trust and abrdn Bloomberg All, you can compare the effects of market volatilities on Invesco QQQ and Abrdn Bloomberg 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 QQQ with a short position of Abrdn Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco QQQ and Abrdn Bloomberg.
Diversification Opportunities for Invesco QQQ and Abrdn Bloomberg
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Invesco and Abrdn is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Invesco QQQ Trust and abrdn Bloomberg All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Bloomberg All and Invesco QQQ 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 QQQ Trust are associated (or correlated) with Abrdn Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Bloomberg All has no effect on the direction of Invesco QQQ i.e., Invesco QQQ and Abrdn Bloomberg go up and down completely randomly.
Pair Corralation between Invesco QQQ and Abrdn Bloomberg
Considering the 90-day investment horizon Invesco QQQ Trust is expected to under-perform the Abrdn Bloomberg. In addition to that, Invesco QQQ is 1.59 times more volatile than abrdn Bloomberg All. It trades about -0.15 of its total potential returns per unit of risk. abrdn Bloomberg All is currently generating about 0.24 per unit of volatility. If you would invest 1,977 in abrdn Bloomberg All on January 19, 2024 and sell it today you would earn a total of 58.00 from holding abrdn Bloomberg All or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco QQQ Trust vs. abrdn Bloomberg All
Performance |
| Timeline |
| Invesco QQQ Trust |
| abrdn Bloomberg All |
Invesco QQQ and Abrdn Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco QQQ and Abrdn Bloomberg
The main advantage of trading using opposite Invesco QQQ and Abrdn Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco QQQ position performs unexpectedly, Abrdn Bloomberg 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 Abrdn Bloomberg will offset losses from the drop in Abrdn Bloomberg's long position.| Invesco QQQ vs. SPDR SP 500 | Invesco QQQ vs. Vanguard SP 500 | Invesco QQQ vs. NVIDIA | Invesco QQQ vs. SPDR Dow Jones |
| Abrdn Bloomberg vs. GraniteShares Bloomberg Commodity | Abrdn Bloomberg vs. abrdn Bloomberg All | Abrdn Bloomberg vs. PIMCO 15 Year | Abrdn Bloomberg vs. Invesco Optimum Yield |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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