Invesco Aerospace Correlations

PPA Etf

USD 119.46 1.55 1.28%

The current 90-days correlation between Invesco Aerospace Defense and Invesco Dynamic Building is 0.75 (i.e., Poor diversification). The correlation of Invesco Aerospace 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 Aerospace Correlation With Market

Poor diversification

The correlation between Invesco Aerospace Defense and DJI is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Aerospace Defense and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Invesco Aerospace Defense. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Moving together with Invesco Etf

0.81	XLI	Industrial Select Sector	Pair Corr
0.83	ITA	iShares Aerospace Defense	Pair Corr
0.77	VIS	Vanguard Industrials	Pair Corr
0.64	FXR	First Trust Industri	Pair Corr
0.71	IYJ	iShares Industrials ETF	Pair Corr
0.78	FIDU	Fidelity MSCI Industrials	Pair Corr
0.63	CAT	Caterpillar	Pair Corr

Moving against Invesco Etf

0.41	KO	Coca Cola Aggressive Push	Pair Corr
0.33	VZ	Verizon Communications	Pair Corr
0.33	MCD	McDonalds	Pair Corr
0.31	JNJ	Johnson Johnson	Pair Corr

Related Correlations Analysis

	XAR	ITA	PKB	PSI	PSJ
XAR		0.56	0.86	0.75	0.0	XAR
ITA	0.56		0.19	0.01	0.0	ITA
PKB	0.86	0.19		0.91	0.0	PKB
PSI	0.75	0.01	0.91		0.0	PSI
PSJ	0.0	0.0	0.0	0.0		PSJ
	XAR	ITA	PKB	PSI	PSJ

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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

PSI	+ 0.91	PKB
PKB	+ 0.86	XAR
PSI	+ 0.75	XAR
ITA	+ 0.56	XAR
PKB	+ 0.19	ITA
PSI	+ 0.01	ITA

High negative correlations

PSJ	- 0.0	PSI
PSJ	- 0.0	PKB
PSJ	- 0.0	ITA
PSJ	- 0.0	XAR

Invesco Aerospace Constituents Risk-Adjusted Indicators

There is a big difference between Invesco Etf performing well and Invesco Aerospace 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 Aerospace'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
XAR	1.12	(0.03)	0.00	(0.03)	0.00	0.00	2.50	(2.19)	7.62
ITA	0.92	0.09	0.09	0.11	0.95	(1.07)	2.13	(1.49)	5.64
PKB	1.42	(0.17)	0.00	(0.14)	0.00	0.00	2.70	(2.55)	8.60
PSI	1.99	(0.25)	0.00	(0.19)	0.00	0.00	3.25	(4.48)	13.59
PSJ	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

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