Correlation Between Invesco Disciplined and Wilmington Large

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

By analyzing existing cross correlation between Invesco Disciplined Equity and Wilmington Large Cap Strategy, you can compare the effects of market volatilities on Invesco Disciplined and Wilmington Large 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 Disciplined with a short position of Wilmington Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Disciplined and Wilmington Large.

Diversification Opportunities for Invesco Disciplined and Wilmington Large

0.99

Correlation Coefficient

Invesco Disciplined  Wilmington Large

No risk reduction

The 3 months correlation between Invesco and Wilmington is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Disciplined Equity and Wilmington Large Cap Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Large Cap and Invesco Disciplined 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 Disciplined Equity are associated (or correlated) with Wilmington Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Large Cap has no effect on the direction of Invesco Disciplined i.e., Invesco Disciplined and Wilmington Large go up and down completely randomly.

Pair Corralation between Invesco Disciplined and Wilmington Large

Assuming the 90 days horizon Invesco Disciplined is expected to generate 1.2 times less return on investment than Wilmington Large. But when comparing it to its historical volatility, Invesco Disciplined Equity is 1.04 times less risky than Wilmington Large. It trades about 0.19 of its potential returns per unit of risk. Wilmington Large Cap Strategy is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  3,051  in Wilmington Large Cap Strategy on May 4, 2025 and sell it today you would earn a total of  324.00  from holding Wilmington Large Cap Strategy or generate 10.62% return on investment over 90 days.

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

Invesco Disciplined Equity  vs.  Wilmington Large Cap Strategy

Invesco Disciplined

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Disciplined Equity are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Invesco Disciplined may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Wilmington Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wilmington Large Cap Strategy are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Wilmington Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Invesco Disciplined and Wilmington Large

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

The idea behind Invesco Disciplined Equity and Wilmington Large Cap Strategy 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.