Correlation Between Exodus Movement, and Invesco Technology

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

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

Diversification Opportunities for Exodus Movement, and Invesco Technology

-0.02

Correlation Coefficient

Exodus Movement,  Invesco Technology

Good diversification

The 3 months correlation between Exodus and Invesco is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Exodus Movement, and Invesco Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Technology and Exodus Movement, 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 Exodus Movement, are associated (or correlated) with Invesco Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Technology has no effect on the direction of Exodus Movement, i.e., Exodus Movement, and Invesco Technology go up and down completely randomly.

Pair Corralation between Exodus Movement, and Invesco Technology

Given the investment horizon of 90 days Exodus Movement, is expected to generate 5.73 times more return on investment than Invesco Technology. However, Exodus Movement, is 5.73 times more volatile than Invesco Technology Fund. It trades about 0.17 of its potential returns per unit of risk. Invesco Technology Fund is currently generating about 0.03 per unit of risk. If you would invest  1,487  in Exodus Movement, on October 6, 2024 and sell it today you would earn a total of  1,784  from holding Exodus Movement, or generate 119.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Exodus Movement,  vs.  Invesco Technology Fund

Exodus Movement,

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exodus Movement, are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Exodus Movement, exhibited solid returns over the last few months and may actually be approaching a breakup point.

Invesco Technology

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Technology Fund are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Invesco Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Exodus Movement, and Invesco Technology

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

The idea behind Exodus Movement, and Invesco Technology Fund 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.