Invesco DWA Correlations

DWAS Etf

USD 82.22 2.24 2.80%

The current 90-days correlation between Invesco DWA SmallCap and Invesco DWA Momentum is 0.93 (i.e., Almost no diversification). The correlation of Invesco DWA 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 correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Invesco DWA Correlation With Market

Poor diversification

The correlation between Invesco DWA SmallCap and DJI is 0.62 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Invesco DWA SmallCap and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Invesco DWA SmallCap. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in nation.

Moving together with Invesco Etf

0.96	VB	Vanguard Small Cap	Pair Corr
0.98	IJR	iShares Core SP	Pair Corr
0.99	IWM	iShares Russell 2000	Pair Corr
0.99	VRTIX	Vanguard Russell 2000	Pair Corr
0.98	VTWO	Vanguard Russell 2000	Pair Corr
0.97	FNDA	Schwab Fundamental Small	Pair Corr
0.98	SPSM	SPDR Portfolio SP	Pair Corr
0.97	DFAS	Dimensional Small Cap	Pair Corr
0.98	VIOO	Vanguard SP Small	Pair Corr
0.97	PRFZ	Invesco FTSE RAFI	Pair Corr
0.9	VTI	Vanguard Total Stock	Pair Corr
0.87	SPY	SPDR SP 500	Pair Corr
0.87	IVV	iShares Core SP Sell-off Trend	Pair Corr
0.94	VUG	Vanguard Growth Index	Pair Corr
0.8	VO	Vanguard Mid Cap	Pair Corr
0.85	MSFT	Microsoft	Pair Corr
0.71	BA	Boeing	Pair Corr
0.76	CAT	Caterpillar	Pair Corr
0.83	BAC	Bank of America Sell-off Trend	Pair Corr
0.84	HD	Home Depot	Pair Corr
0.76	DIS	Walt Disney	Pair Corr

Moving against Invesco Etf

0.74	BND	Vanguard Total Bond Sell-off Trend	Pair Corr
0.62	VEA	Vanguard FTSE Developed	Pair Corr
0.56	GDXU	MicroSectors Gold Miners	Pair Corr
0.8	VZ	Verizon Communications	Pair Corr
0.79	JNJ	Johnson Johnson	Pair Corr
0.76	TRV	The Travelers Companies	Pair Corr
0.69	T	ATT Inc Earnings Call Today	Pair Corr
0.46	XOM	Exxon Mobil Corp Aggressive Push	Pair Corr
0.45	PG	Procter Gamble	Pair Corr
0.38	IBM	International Business	Pair Corr
0.36	INTC	Intel	Pair Corr

Related Correlations Analysis

	PDP	PIZ	PIE	FYC	FYX
PDP		-0.11	0.09	0.95	0.92	PDP
PIZ	-0.11		-0.09	-0.35	-0.41	PIZ
PIE	0.09	-0.09		0.2	0.2	PIE
FYC	0.95	-0.35	0.2		0.99	FYC
FYX	0.92	-0.41	0.2	0.99		FYX
	PDP	PIZ	PIE	FYC	FYX

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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

FYX	+ 0.99	FYC
FYC	+ 0.95	PDP
FYX	+ 0.92	PDP
FYC	+ 0.2	PIE
FYX	+ 0.2	PIE
PIE	+ 0.09	PDP

High negative correlations

FYX	- 0.41	PIZ
FYC	- 0.35	PIZ
PIZ	- 0.11	PDP
PIE	- 0.09	PIZ

Invesco DWA Constituents Risk-Adjusted Indicators

There is a big difference between Invesco Etf performing well and Invesco DWA 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 DWA'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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
PDP	1.28	(0.08)	0.00	(0.13)	0.00	0.00	2.01	(3.63)	6.59
PIZ	0.84	0.10	0.11	0.07	1.02	(0.85)	1.53	(1.63)	5.19
PIE	0.81	(0.08)	0.00	(0.28)	0.00	0.00	1.50	(1.83)	4.50
FYC	1.14	(0.14)	0.00	(0.19)	0.00	0.00	1.99	(2.76)	5.91
FYX	0.88	(0.17)	0.00	(0.25)	0.00	0.00	1.57	(2.37)	4.77

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