Invesco DWA Correlations

DWAS Etf

USD 90.74 0.68 0.74%

The current 90-days correlation between Invesco DWA SmallCap and Invesco DWA Momentum is 0.88 (i.e., Very poor diversification). The correlation of Invesco DWA 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. If the correlation is 0, the equities are not correlated; they are entirely random.

Invesco DWA Correlation With Market

Very poor diversification

The correlation between Invesco DWA SmallCap and DJI is 0.81 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Invesco DWA SmallCap and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Invesco DWA SmallCap. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in nation.

Moving together with Invesco Etf

0.96	VBK	Vanguard Small Cap	Pair Corr
0.98	IWO	iShares Russell 2000	Pair Corr
0.96	IJT	iShares SP Small	Pair Corr
0.96	SLYG	SPDR SP 600	Pair Corr
0.98	VTWG	Vanguard Russell 2000	Pair Corr
0.85	VRTGX	Vanguard Russell 2000	Pair Corr
0.96	VIOG	Vanguard SP Small	Pair Corr
0.66	SIXD	AIM ETF Products	Pair Corr
0.65	CEFD	ETRACS Monthly Pay	Pair Corr
0.66	CEFS	Saba Closed End Low Volatility	Pair Corr
0.71	HD	Home Depot	Pair Corr
0.77	CAT	Caterpillar Fiscal Year End 3rd of February 2025	Pair Corr

Moving against Invesco Etf

0.37

VIIX

Pair Corr

Related Correlations Analysis

	PDP	PIZ	PIE	FYC	FYX
PDP		0.96	0.53	0.74	0.52	PDP
PIZ	0.96		0.53	0.75	0.56	PIZ
PIE	0.53	0.53		0.03	0.0	PIE
FYC	0.74	0.75	0.03		0.91	FYC
FYX	0.52	0.56	0.0	0.91		FYX
	PDP	PIZ	PIE	FYC	FYX

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

PIZ	+ 0.96	PDP
FYX	+ 0.91	FYC
FYC	+ 0.75	PIZ
FYC	+ 0.74	PDP
FYX	+ 0.56	PIZ
PIE	+ 0.53	PDP

High negative correlations

FYX

- 0.0

PIE

Invesco DWA Constituents Risk-Adjusted Indicators

There is a big difference between Invesco Etf performing well and Invesco DWA ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Invesco DWA's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
PDP	0.94	(0.04)	(0.02)	0.07	1.32	(0.98)	2.10	(2.87)	6.50
PIZ	1.02	(0.06)	(0.02)	0.06	1.29	(1.14)	2.15	(2.56)	5.27
PIE	1.18	(0.16)	0.00	(0.04)	0.00	0.00	2.30	(2.55)	6.21
FYC	1.08	0.01	0.04	0.11	1.34	(1.20)	2.83	(2.39)	6.73
FYX	1.09	(0.03)	0.02	0.09	1.29	(1.19)	2.42	(2.56)	7.19

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