| CSD Etf | | | USD 86.97 1.97 2.32% |
The current 90-days correlation between Invesco SP Spin and Invesco Zacks Mid Cap is 0.84 (i.e., Very poor diversification). The correlation of Invesco SP is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Invesco SP Correlation With Market
Poor diversification
The correlation between Invesco SP Spin Off and DJI is 0.64 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Invesco SP Spin Off and DJI in the same portfolio, assuming nothing else is changed.
Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Invesco SP Spin Off. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in state.