Invesco QQQ Correlations
| QQQ Etf | USD 426.51 1.44 0.34% |
The correlation of Invesco QQQ is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Invesco QQQ moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Invesco QQQ Trust moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Poor diversification
The correlation between Invesco QQQ Trust and NYA is 0.65 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Invesco QQQ Trust and NYA in the same portfolio, assuming nothing else is changed.
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The ability to find closely correlated positions to Invesco QQQ could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Invesco QQQ when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Invesco QQQ - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Invesco QQQ Trust to buy it.
Moving together with Invesco Etf
| 0.96 | VUG | Vanguard Growth Index | PairCorr |
| 0.96 | IWF | iShares Russell 1000 | PairCorr |
| 0.86 | IVW | iShares SP 500 | PairCorr |
| 0.93 | SPYG | SPDR Portfolio SP Sell-off Trend | PairCorr |
| 0.92 | IUSG | iShares Core SP | PairCorr |
| 0.96 | VONG | Vanguard Russell 1000 | PairCorr |
| 0.89 | MGK | Vanguard Mega Cap | PairCorr |
| 0.96 | VRGWX | Vanguard Russell 1000 | PairCorr |
| 0.9 | MTUM | iShares MSCI USA | PairCorr |
| 1.0 | QQQM | Invesco NASDAQ 100 | PairCorr |
| 0.88 | USD | ProShares Ultra Semi | PairCorr |
| 0.82 | TECL | Direxion Daily Technology | PairCorr |
| 0.86 | ROM | ProShares Ultra Tech | PairCorr |
| 0.88 | QLD | ProShares Ultra QQQ | PairCorr |
| 0.87 | SMH | VanEck Semiconductor ETF Potential Growth | PairCorr |
| 0.9 | SOXX | iShares Semiconductor ETF | PairCorr |
| 0.89 | PSI | Invesco Dynamic Semi | PairCorr |
| 0.94 | UPRO | ProShares UltraPro SP500 Sell-off Trend | PairCorr |
| 0.88 | SPXL | Direxion Daily SP500 Sell-off Trend | PairCorr |
| 0.84 | XLK | Technology Select Sector | PairCorr |
Related Correlations Analysis
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Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Invesco QQQ Constituents Risk-Adjusted Indicators
There is a big difference between Invesco Etf performing well and Invesco QQQ ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Invesco QQQ's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.Be your own money manager
Our tools can tell you how much better you can do entering a position in Invesco QQQ without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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The danger of trading Invesco QQQ Trust is mainly related to its market volatility and ETF specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Invesco QQQ is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Invesco QQQ. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Invesco QQQ Trust is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Invesco QQQ Trust is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Invesco Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Invesco Qqq Trust Etf. Highlighted below are key reports to facilitate an investment decision about Invesco Qqq Trust Etf: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Invesco QQQ Trust. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in producer price index. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
The market value of Invesco QQQ Trust is measured differently than its book value, which is the value of Invesco that is recorded on the company's balance sheet. Investors also form their own opinion of Invesco QQQ's value that differs from its market value or its book value, called intrinsic value, which is Invesco QQQ's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Invesco QQQ's market value can be influenced by many factors that don't directly affect Invesco QQQ's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Invesco QQQ's value and its price as these two are different measures arrived at by different means. Investors typically determine if Invesco QQQ is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Invesco QQQ's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.