Correlation Between Strategic Asset and Invesco Gold
Can any of the company-specific risk be diversified away by investing in both Strategic Asset and Invesco Gold 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 Strategic Asset and Invesco Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Asset Management and Invesco Gold Special, you can compare the effects of market volatilities on Strategic Asset and Invesco Gold 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 Strategic Asset with a short position of Invesco Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Asset and Invesco Gold.
Diversification Opportunities for Strategic Asset and Invesco Gold
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Strategic and Invesco is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Asset Management and Invesco Gold Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Gold Special and Strategic Asset 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 Strategic Asset Management are associated (or correlated) with Invesco Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Gold Special has no effect on the direction of Strategic Asset i.e., Strategic Asset and Invesco Gold go up and down completely randomly.
Pair Corralation between Strategic Asset and Invesco Gold
Assuming the 90 days horizon Strategic Asset Management is expected to generate 0.29 times more return on investment than Invesco Gold. However, Strategic Asset Management is 3.43 times less risky than Invesco Gold. It trades about 0.12 of its potential returns per unit of risk. Invesco Gold Special is currently generating about -0.02 per unit of risk. If you would invest 1,818 in Strategic Asset Management on September 14, 2024 and sell it today you would earn a total of 68.00 from holding Strategic Asset Management or generate 3.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Strategic Asset Management vs. Invesco Gold Special
Performance |
Timeline |
Strategic Asset Mana |
Invesco Gold Special |
Strategic Asset and Invesco Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Strategic Asset and Invesco Gold
The main advantage of trading using opposite Strategic Asset and Invesco Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Asset position performs unexpectedly, Invesco Gold 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 Gold will offset losses from the drop in Invesco Gold's long position.Strategic Asset vs. Invesco Gold Special | Strategic Asset vs. James Balanced Golden | Strategic Asset vs. Gabelli Gold Fund | Strategic Asset vs. Sprott Gold Equity |
Invesco Gold vs. Invesco Municipal Income | Invesco Gold vs. Invesco Municipal Income | Invesco Gold vs. Invesco Municipal Income | Invesco Gold vs. Oppenheimer Rising Dividends |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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