Correlation Between Invesco Municipal and Intel
Can any of the company-specific risk be diversified away by investing in both Invesco Municipal and Intel 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 Municipal and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Municipal Income and Intel, you can compare the effects of market volatilities on Invesco Municipal and Intel 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 Municipal with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Municipal and Intel.
Diversification Opportunities for Invesco Municipal and Intel
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Invesco and Intel is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Municipal Income and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Invesco Municipal 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 Municipal Income are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Invesco Municipal i.e., Invesco Municipal and Intel go up and down completely randomly.
Pair Corralation between Invesco Municipal and Intel
Assuming the 90 days horizon Invesco Municipal Income is expected to generate 0.09 times more return on investment than Intel. However, Invesco Municipal Income is 11.62 times less risky than Intel. It trades about -0.24 of its potential returns per unit of risk. Intel is currently generating about -0.35 per unit of risk. If you would invest 1,195 in Invesco Municipal Income on January 23, 2024 and sell it today you would lose (13.00) from holding Invesco Municipal Income or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Municipal Income vs. Intel
Performance |
| Timeline |
| Invesco Municipal |
| Intel |
Invesco Municipal and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Municipal and Intel
The main advantage of trading using opposite Invesco Municipal and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Municipal position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Invesco Municipal vs. Oppenheimer Rising Dividends | Invesco Municipal vs. Invesco High Yield | Invesco Municipal vs. Oppenheimer International Small | Invesco Municipal vs. Invesco High 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |