Correlation Between Counterpoint Tactical and Invesco Energy

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Counterpoint Tactical and Invesco Energy 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 Counterpoint Tactical and Invesco Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Counterpoint Tactical Municipal and Invesco Energy Fund, you can compare the effects of market volatilities on Counterpoint Tactical and Invesco Energy 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 Counterpoint Tactical with a short position of Invesco Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Counterpoint Tactical and Invesco Energy.

Diversification Opportunities for Counterpoint Tactical and Invesco Energy

-0.11
  Correlation Coefficient

Good diversification

The 3 months correlation between Counterpoint and Invesco is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Counterpoint Tactical Municipa and Invesco Energy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Energy and Counterpoint Tactical 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 Counterpoint Tactical Municipal are associated (or correlated) with Invesco Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Energy has no effect on the direction of Counterpoint Tactical i.e., Counterpoint Tactical and Invesco Energy go up and down completely randomly.

Pair Corralation between Counterpoint Tactical and Invesco Energy

Assuming the 90 days horizon Counterpoint Tactical Municipal is expected to generate 0.2 times more return on investment than Invesco Energy. However, Counterpoint Tactical Municipal is 5.13 times less risky than Invesco Energy. It trades about 0.09 of its potential returns per unit of risk. Invesco Energy Fund is currently generating about -0.28 per unit of risk. If you would invest  1,075  in Counterpoint Tactical Municipal on September 17, 2024 and sell it today you would earn a total of  3.00  from holding Counterpoint Tactical Municipal or generate 0.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Counterpoint Tactical Municipa  vs.  Invesco Energy Fund

 Performance 
       Timeline  
Counterpoint Tactical 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Counterpoint Tactical Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Counterpoint Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Invesco Energy 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Energy Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Invesco Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Counterpoint Tactical and Invesco Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Counterpoint Tactical and Invesco Energy

The main advantage of trading using opposite Counterpoint Tactical and Invesco Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Counterpoint Tactical position performs unexpectedly, Invesco Energy 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 Energy will offset losses from the drop in Invesco Energy's long position.
The idea behind Counterpoint Tactical Municipal and Invesco Energy 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.
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules