Invesco RAFI Correlations

IUS Etf  USD 49.13  0.88  1.82%   
The current 90-days correlation between Invesco RAFI Strategic and Invesco International BuyBack is -0.02 (i.e., Good diversification). The correlation of Invesco RAFI 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 RAFI Correlation With Market

Poor diversification

The correlation between Invesco RAFI Strategic and DJI is 0.77 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Invesco RAFI Strategic and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Invesco RAFI Strategic. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in employment.

Moving together with Invesco Etf

  0.91VTV Vanguard Value IndexPairCorr
  0.88VYM Vanguard High DividendPairCorr
  0.95IWD iShares Russell 1000PairCorr
  0.89DGRO iShares Core DividendPairCorr
  0.95IVE iShares SP 500PairCorr
  0.83DVY iShares Select DividendPairCorr
  0.95SPYV SPDR Portfolio SPPairCorr
  0.96IUSV iShares Core SPPairCorr
  0.73AXP American ExpressPairCorr
  0.61HPQ HP IncPairCorr
  0.76WMT WalmartPairCorr
  0.77JPM JPMorgan ChasePairCorr
  0.81HD Home DepotPairCorr

Moving against Invesco Etf

  0.52WTID UBS ETRACSPairCorr
  0.32MRK Merck Company Sell-off TrendPairCorr

Related Correlations Analysis

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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   
VRIGIPKW
FADFYT
RNDVFAD
RNDVIPKW
RNDVFYT
RNDVVRIG
  
High negative correlations   
FYTVRIG
FYTIPKW
FADVRIG
FADIPKW

Invesco RAFI Constituents Risk-Adjusted Indicators

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