Correlation Between Invesco SP and PENSKE
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By analyzing existing cross correlation between Invesco SP 500 and PENSKE AUTOMOTIVE GROUP, you can compare the effects of market volatilities on Invesco SP and PENSKE 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 Invesco SP with a short position of PENSKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco SP and PENSKE.
Diversification Opportunities for Invesco SP and PENSKE
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invesco and PENSKE is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Invesco SP 500 and PENSKE AUTOMOTIVE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENSKE AUTOMOTIVE and Invesco SP 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 Invesco SP 500 are associated (or correlated) with PENSKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENSKE AUTOMOTIVE has no effect on the direction of Invesco SP i.e., Invesco SP and PENSKE go up and down completely randomly.
Pair Corralation between Invesco SP and PENSKE
Considering the 90-day investment horizon Invesco SP 500 is expected to under-perform the PENSKE. In addition to that, Invesco SP is 3.51 times more volatile than PENSKE AUTOMOTIVE GROUP. It trades about -0.08 of its total potential returns per unit of risk. PENSKE AUTOMOTIVE GROUP is currently generating about -0.2 per unit of volatility. If you would invest 9,850 in PENSKE AUTOMOTIVE GROUP on September 24, 2024 and sell it today you would lose (139.00) from holding PENSKE AUTOMOTIVE GROUP or give up 1.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Invesco SP 500 vs. PENSKE AUTOMOTIVE GROUP
Performance |
Timeline |
Invesco SP 500 |
PENSKE AUTOMOTIVE |
Invesco SP and PENSKE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Invesco SP and PENSKE
The main advantage of trading using opposite Invesco SP and PENSKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco SP position performs unexpectedly, PENSKE 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 PENSKE will offset losses from the drop in PENSKE's long position.Invesco SP vs. iShares Russell 1000 | Invesco SP vs. iShares SP 500 | Invesco SP vs. SPDR Portfolio SP | Invesco SP vs. iShares Core SP |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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