Correlation Analysis Between Invesco DWA and BSE

This module allows you to analyze existing cross correlation between Invesco DWA Technology Momentum and BSE. You can compare the effects of market volatilities on Invesco DWA and BSE 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 DWA with a short position of BSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Invesco DWA and BSE.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

Invesco DWA Technology Momentu  vs.  BSE

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Invesco DWA Technology Momentum is expected to generate 2.01 times more return on investment than BSE. However, Invesco DWA is 2.01 times more volatile than BSE. It trades about 0.1 of its potential returns per unit of risk. BSE is currently generating about -0.14 per unit of risk. If you would invest  7,333  in Invesco DWA Technology Momentum on July 22, 2019 and sell it today you would earn a total of  486.00  from holding Invesco DWA Technology Momentum or generate 6.63% return on investment over 30 days.

Pair Corralation between Invesco DWA and BSE

-0.54
Time Period2 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Invesco DWA and BSE

Invesco DWA Technology Momentu diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding Invesco DWA Technology Momentu and BSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BSE and Invesco DWA 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 DWA Technology Momentum are associated (or correlated) with BSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSE has no effect on the direction of Invesco DWA i.e. Invesco DWA and BSE go up and down completely randomly.
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See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
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