Correlation Between Invesco China and CHIE
Can any of the company-specific risk be diversified away by investing in both Invesco China and CHIE 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 Invesco China and CHIE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco China Technology and CHIE, you can compare the effects of market volatilities on Invesco China and CHIE 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 Invesco China with a short position of CHIE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco China and CHIE.
Diversification Opportunities for Invesco China and CHIE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Invesco and CHIE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Invesco China Technology and CHIE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIE and Invesco China 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 Invesco China Technology are associated (or correlated) with CHIE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIE has no effect on the direction of Invesco China i.e., Invesco China and CHIE go up and down completely randomly.
Pair Corralation between Invesco China and CHIE
If you would invest 4,088 in Invesco China Technology on December 2, 2024 and sell it today you would earn a total of 470.00 from holding Invesco China Technology or generate 11.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Invesco China Technology vs. CHIE
Performance |
Timeline |
Invesco China Technology |
CHIE |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Invesco China and CHIE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Invesco China and CHIE
The main advantage of trading using opposite Invesco China and CHIE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco China position performs unexpectedly, CHIE 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 CHIE will offset losses from the drop in CHIE's long position.Invesco China vs. KraneShares CSI China | Invesco China vs. iShares MSCI China | Invesco China vs. Global X MSCI | Invesco China vs. Xtrackers Harvest CSI |
Check out your portfolio center.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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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