Correlation Between Invesco Actively and Global X

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

By analyzing existing cross correlation between Invesco Actively Managed and Global X Funds, you can compare the effects of market volatilities on Invesco Actively and Global X 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 Actively with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Actively and Global X.

Diversification Opportunities for Invesco Actively and Global X

-0.33

Correlation Coefficient

Invesco Actively  Global X

Very good diversification

The 3 months correlation between Invesco and Global is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Actively Managed and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and Invesco Actively 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 Actively Managed are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of Invesco Actively i.e., Invesco Actively and Global X go up and down completely randomly.

Pair Corralation between Invesco Actively and Global X

Given the investment horizon of 90 days Invesco Actively Managed is expected to generate 0.69 times more return on investment than Global X. However, Invesco Actively Managed is 1.46 times less risky than Global X. It trades about 0.21 of its potential returns per unit of risk. Global X Funds is currently generating about -0.02 per unit of risk. If you would invest  4,585  in Invesco Actively Managed on December 29, 2024 and sell it today you would earn a total of  379.00  from holding Invesco Actively Managed or generate 8.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Invesco Actively Managed  vs.  Global X Funds

Invesco Actively Managed

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Actively Managed are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Invesco Actively may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Global X Funds

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global X Funds has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Global X is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Invesco Actively and Global X

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

The idea behind Invesco Actively Managed and Global X Funds 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.