Correlation Between Exodus Movement, and Invesco Municipal

Can any of the company-specific risk be diversified away by investing in both Exodus Movement, and Invesco Municipal 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 Municipal 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 Municipal Income, you can compare the effects of market volatilities on Exodus Movement, and Invesco Municipal 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 Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exodus Movement, and Invesco Municipal.

Diversification Opportunities for Exodus Movement, and Invesco Municipal

0.17

Correlation Coefficient

Exodus Movement,  Invesco Municipal

Average diversification

The 3 months correlation between Exodus and Invesco is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Exodus Movement, and Invesco Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Income 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 Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal Income has no effect on the direction of Exodus Movement, i.e., Exodus Movement, and Invesco Municipal go up and down completely randomly.

Pair Corralation between Exodus Movement, and Invesco Municipal

Given the investment horizon of 90 days Exodus Movement, is expected to generate 55.11 times more return on investment than Invesco Municipal. However, Exodus Movement, is 55.11 times more volatile than Invesco Municipal Income. It trades about 0.08 of its potential returns per unit of risk. Invesco Municipal Income is currently generating about 0.04 per unit of risk. If you would invest  3,505  in Exodus Movement, on December 21, 2024 and sell it today you would earn a total of  570.00  from holding Exodus Movement, or generate 16.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Exodus Movement,  vs.  Invesco Municipal Income

Exodus Movement,

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Exodus Movement, are ranked lower than 6 (%) 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 Municipal Income

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Municipal Income 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 Municipal 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 Municipal

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

The idea behind Exodus Movement, and Invesco Municipal Income 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.