Correlation Between Invesco Aerospace and Voya Large

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

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

Diversification Opportunities for Invesco Aerospace and Voya Large

0.41

Correlation Coefficient

Invesco Aerospace  Voya Large

Very weak diversification

The 3 months correlation between Invesco and Voya is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Aerospace Defense and Voya Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Large Cap and Invesco Aerospace 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 Aerospace Defense are associated (or correlated) with Voya Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Large Cap has no effect on the direction of Invesco Aerospace i.e., Invesco Aerospace and Voya Large go up and down completely randomly.

Pair Corralation between Invesco Aerospace and Voya Large

Considering the 90-day investment horizon Invesco Aerospace Defense is expected to generate 0.5 times more return on investment than Voya Large. However, Invesco Aerospace Defense is 1.98 times less risky than Voya Large. It trades about 0.33 of its potential returns per unit of risk. Voya Large Cap is currently generating about 0.05 per unit of risk. If you would invest  12,430  in Invesco Aerospace Defense on May 7, 2025 and sell it today you would earn a total of  2,264  from holding Invesco Aerospace Defense or generate 18.21% return on investment over 90 days.

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

Invesco Aerospace Defense  vs.  Voya Large Cap

Invesco Aerospace Defense

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Aerospace Defense are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Invesco Aerospace sustained solid returns over the last few months and may actually be approaching a breakup point.

Voya Large Cap

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Large Cap are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Voya Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Invesco Aerospace and Voya Large

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

The idea behind Invesco Aerospace Defense and Voya Large Cap 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.

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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.