Correlation Between Via Renewables and Invesco BulletShares

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

By analyzing existing cross correlation between Via Renewables and Invesco BulletShares 2026, you can compare the effects of market volatilities on Via Renewables and Invesco BulletShares 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 Via Renewables with a short position of Invesco BulletShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Renewables and Invesco BulletShares.

Diversification Opportunities for Via Renewables and Invesco BulletShares

0.87

Correlation Coefficient

Via Renewables  Invesco BulletShares

Very poor diversification

The 3 months correlation between Via and Invesco is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Via Renewables and Invesco BulletShares 2026 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco BulletShares 2026 and Via Renewables 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 Via Renewables are associated (or correlated) with Invesco BulletShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco BulletShares 2026 has no effect on the direction of Via Renewables i.e., Via Renewables and Invesco BulletShares go up and down completely randomly.

Pair Corralation between Via Renewables and Invesco BulletShares

Assuming the 90 days horizon Via Renewables is expected to generate 10.18 times more return on investment than Invesco BulletShares. However, Via Renewables is 10.18 times more volatile than Invesco BulletShares 2026. It trades about 0.29 of its potential returns per unit of risk. Invesco BulletShares 2026 is currently generating about 0.17 per unit of risk. If you would invest  2,002  in Via Renewables on October 22, 2024 and sell it today you would earn a total of  313.00  from holding Via Renewables or generate 15.63% return on investment over 90 days.

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

Via Renewables  vs.  Invesco BulletShares 2026

Via Renewables

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Via Renewables are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Via Renewables reported solid returns over the last few months and may actually be approaching a breakup point.

Invesco BulletShares 2026

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco BulletShares 2026 are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Invesco BulletShares is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Via Renewables and Invesco BulletShares

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

The idea behind Via Renewables and Invesco BulletShares 2026 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.