Invesco Aerospace Correlations

PPA Etf  USD 116.38  1.27  1.10%   
The current 90-days correlation between Invesco Aerospace Defense and Invesco Dynamic Building is 0.73 (i.e., Poor diversification). The correlation of Invesco Aerospace 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 Aerospace Correlation With Market

Poor diversification

The correlation between Invesco Aerospace Defense and DJI is 0.77 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Aerospace Defense and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Invesco Aerospace Defense. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Moving together with Invesco Etf

  0.96XLI Industrial Select SectorPairCorr
  0.86DRVN Driven Brands HoldingsPairCorr
  0.99ITA iShares Aerospace Defense Low VolatilityPairCorr
  0.93VIS Vanguard IndustrialsPairCorr
  0.9FXR First Trust IndustriPairCorr
  0.96IYJ iShares Industrials ETFPairCorr
  0.74IYT iShares TransportationPairCorr
  0.93FIDU Fidelity MSCI IndustrialsPairCorr
  0.93JAVA JPMorgan Active ValuePairCorr
  0.96SHLD Global X FundsPairCorr
  0.93IGLD FT Cboe VestPairCorr
  0.79CA Xtrackers CaliforniaPairCorr
  0.92GLD SPDR Gold Shares Sell-off TrendPairCorr
  0.86WMT Walmart Aggressive PushPairCorr
  0.82T ATT Inc Fiscal Year End 22nd of January 2025 PairCorr
  0.89HD Home DepotPairCorr
  0.85KO Coca Cola Fiscal Year End 11th of February 2025 PairCorr
  0.85MMM 3M Company Fiscal Year End 28th of January 2025 PairCorr
  0.92AXP American Express Fiscal Year End 24th of January 2025 PairCorr
  0.73VZ Verizon Communications Fiscal Year End 28th of January 2025 PairCorr
  0.93IBM International Business Fiscal Year End 22nd of January 2025 PairCorr
  0.8CAT Caterpillar Fiscal Year End 3rd of February 2025 PairCorr
  0.84TRV The Travelers Companies Fiscal Year End 17th of January 2025 PairCorr

Moving against Invesco Etf

  0.76HUM Humana Inc Fiscal Year End 23rd of January 2025 PairCorr
  0.7BA Boeing Fiscal Year End 29th of January 2025 PairCorr
  0.58INTC Intel Fiscal Year End 23rd of January 2025 PairCorr
  0.39CVX Chevron Corp Sell-off TrendPairCorr
  0.32MSFT Microsoft Sell-off TrendPairCorr

Related Correlations Analysis

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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   
ITAXAR
PSJITA
PKBXAR
PSJXAR
PKBITA
PSJPKB
  
High negative correlations   
PSIITA
PSJPSI
PSIXAR
PSIPKB

Invesco Aerospace Constituents Risk-Adjusted Indicators

There is a big difference between Invesco Etf performing well and Invesco Aerospace 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 Aerospace'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.