Correlation Between Ninepoint Energy and Invesco International

Can any of the company-specific risk be diversified away by investing in both Ninepoint Energy and Invesco International 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 Ninepoint Energy and Invesco International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ninepoint Energy and Invesco International Developed, you can compare the effects of market volatilities on Ninepoint Energy and Invesco International 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 Ninepoint Energy with a short position of Invesco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ninepoint Energy and Invesco International.

Diversification Opportunities for Ninepoint Energy and Invesco International

0.0

Correlation Coefficient

Ninepoint Energy  Invesco International

Pay attention - limited upside

The 3 months correlation between Ninepoint and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ninepoint Energy and Invesco International Develope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco International and Ninepoint Energy 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 Ninepoint Energy are associated (or correlated) with Invesco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco International has no effect on the direction of Ninepoint Energy i.e., Ninepoint Energy and Invesco International go up and down completely randomly.

Pair Corralation between Ninepoint Energy and Invesco International

If you would invest  2,607  in Ninepoint Energy on October 9, 2024 and sell it today you would lose (23.00) from holding Ninepoint Energy or give up 0.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ninepoint Energy  vs.  Invesco International Develope

Ninepoint Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ninepoint Energy has generated negative risk-adjusted returns adding no value to fund investors. Despite latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Invesco International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Invesco International Developed has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong primary indicators, Invesco International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ninepoint Energy and Invesco International

The main advantage of trading using opposite Ninepoint Energy and Invesco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ninepoint Energy position performs unexpectedly, Invesco International 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 Invesco International will offset losses from the drop in Invesco International's long position.

The idea behind Ninepoint Energy and Invesco International Developed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.