Invesco KBW Correlations

KBWD Etf

USD 14.91 0.08 0.53%

The current 90-days correlation between Invesco KBW High and Direxion Daily Regional is 0.67 (i.e., Poor diversification). The correlation of Invesco KBW 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.

Invesco KBW Correlation With Market

Poor diversification

The correlation between Invesco KBW High and DJI is 0.63 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Invesco KBW High and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Invesco KBW High. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in housing.

Moving together with Invesco Etf

0.76	XLF	Financial Select Sector Aggressive Push	Pair Corr
0.64	VFH	Vanguard Financials Index	Pair Corr
0.66	IYF	iShares Financials ETF	Pair Corr
0.62	IYG	iShares Financial	Pair Corr
0.64	EUFN	iShares MSCI Europe	Pair Corr
0.66	BND	Vanguard Total Bond Sell-off Trend	Pair Corr
0.81	VTV	Vanguard Value Index	Pair Corr
0.77	VEA	Vanguard FTSE Developed	Pair Corr
0.68	KO	Coca Cola	Pair Corr
0.75	T	ATT Inc Earnings Call This Week	Pair Corr
0.79	DD	Dupont De Nemours	Pair Corr
0.66	JNJ	Johnson Johnson	Pair Corr
0.63	MMM	3M Company	Pair Corr
0.73	GE	GE Aerospace	Pair Corr
0.65	MCD	McDonalds	Pair Corr

Moving against Invesco Etf

0.76	MRK	Merck Company	Pair Corr
0.36	MSFT	Microsoft	Pair Corr
0.36	AA	Alcoa Corp	Pair Corr

Related Correlations Analysis

	DPST	EUFN	FNCL	FAS	FAZ	FXO	FTXO	IAI	IAK
DPST		-0.52	0.85	0.82	-0.73	0.96	0.99	0.92	-0.5	DPST
EUFN	-0.52		-0.11	0.02	-0.08	-0.36	-0.44	-0.21	0.91	EUFN
FNCL	0.85	-0.11		0.93	-0.97	0.89	0.88	0.93	-0.13	FNCL
FAS	0.82	0.02	0.93		-0.92	0.89	0.86	0.95	0.03	FAS
FAZ	-0.73	-0.08	-0.97	-0.92		-0.81	-0.78	-0.87	-0.06	FAZ
FXO	0.96	-0.36	0.89	0.89	-0.81		0.97	0.95	-0.31	FXO
FTXO	0.99	-0.44	0.88	0.86	-0.78	0.97		0.95	-0.45	FTXO
IAI	0.92	-0.21	0.93	0.95	-0.87	0.95	0.95		-0.24	IAI
IAK	-0.5	0.91	-0.13	0.03	-0.06	-0.31	-0.45	-0.24		IAK
	DPST	EUFN	FNCL	FAS	FAZ	FXO	FTXO	IAI	IAK

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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

FTXO	+ 0.99	DPST
FTXO	+ 0.97	FXO
FXO	+ 0.96	DPST
IAI	+ 0.95	FAS
IAI	+ 0.95	FXO
IAI	+ 0.95	FTXO

High negative correlations

FAZ	- 0.97	FNCL
FAZ	- 0.92	FAS
IAI	- 0.87	FAZ
FXO	- 0.81	FAZ
FTXO	- 0.78	FAZ
FAZ	- 0.73	DPST

Invesco KBW Constituents Risk-Adjusted Indicators

There is a big difference between Invesco Etf performing well and Invesco KBW 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 KBW'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
DPST	3.34	(0.09)	0.00	(0.09)	0.00	0.00	5.69	(7.82)	21.75
EUFN	0.91	0.41	0.39	0.56	0.70	(1.07)	2.14	(1.60)	6.58
FNCL	0.81	0.00	0.05	(0.04)	1.20	(0.80)	1.43	(1.79)	6.08
FAS	2.37	0.24	0.04	0.02	3.36	(2.36)	3.78	(5.13)	18.42
FAZ	2.33	(0.07)	0.00	0.27	0.00	0.00	5.11	(3.90)	17.34
FXO	0.84	0.03	0.00	(0.04)	0.00	0.00	1.48	(2.05)	5.74
FTXO	1.08	0.00	0.00	(0.07)	0.00	0.00	1.66	(2.15)	7.72
IAI	1.04	0.05	0.00	(0.02)	0.00	0.00	2.00	(2.52)	7.83
IAK	0.84	0.14	0.17	0.18	0.88	(0.95)	1.88	(1.11)	5.10

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