Correlation Analysis Between Invesco DWA and NASDAQ UK

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

 Predicted Return Density 
      Returns 

Invesco DWA Technology Momentu  vs.  NASDAQ UK

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Invesco DWA Technology Momentum is expected to generate 2.18 times more return on investment than NASDAQ UK. However, Invesco DWA is 2.18 times more volatile than NASDAQ UK. It trades about 0.1 of its potential returns per unit of risk. NASDAQ UK is currently generating about -0.28 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 NASDAQ UK

-0.3
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy97.67%
ValuesDaily Returns

Diversification Opportunities for Invesco DWA and NASDAQ UK

Invesco DWA Technology Momentu diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Invesco DWA Technology Momentu and NASDAQ UK in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ UK 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 NASDAQ UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASDAQ UK has no effect on the direction of Invesco DWA i.e. Invesco DWA and NASDAQ UK go up and down completely randomly.
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