This module allows you to analyze existing cross correlation between Invesco DWA Technology Momentum and XU100. You can compare the effects of market volatilities on Invesco DWA and XU100 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 XU100. See also your portfolio center. Please also check ongoing floating volatility patterns of Invesco DWA and XU100.
|Horizon||30 Days Login to change|
Predicted Return Density
Invesco DWA Technology Momentu vs. XU100
Considering 30-days investment horizon, Invesco DWA Technology Momentum is expected to generate 1.11 times more return on investment than XU100. However, Invesco DWA is 1.11 times more volatile than XU100. It trades about 0.15 of its potential returns per unit of risk. XU100 is currently generating about 0.03 per unit of risk. If you would invest 7,106 in Invesco DWA Technology Momentum on July 26, 2019 and sell it today you would earn a total of 737.50 from holding Invesco DWA Technology Momentum or generate 10.38% return on investment over 30 days.
Pair Corralation between Invesco DWA and XU100
|Time Period||2 Months [change]|
Diversification Opportunities for Invesco DWA and XU100
Overlapping area represents the amount of risk that can be diversified away by holding Invesco DWA Technology Momentu and XU100 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on XU100 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 XU100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XU100 has no effect on the direction of Invesco DWA i.e. Invesco DWA and XU100 go up and down completely randomly.
See also your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.