Correlation Between Invesco Exchange and Fidelity International

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

By analyzing existing cross correlation between Invesco Exchange Traded and Fidelity International Multifactor, you can compare the effects of market volatilities on Invesco Exchange and Fidelity International 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 Exchange with a short position of Fidelity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Exchange and Fidelity International.

Diversification Opportunities for Invesco Exchange and Fidelity International

0.85

Correlation Coefficient

Invesco Exchange  Fidelity International

Very poor diversification

The 3 months correlation between Invesco and Fidelity is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Exchange Traded and Fidelity International Multifa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International and Invesco Exchange 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 Exchange Traded are associated (or correlated) with Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Invesco Exchange i.e., Invesco Exchange and Fidelity International go up and down completely randomly.

Pair Corralation between Invesco Exchange and Fidelity International

Given the investment horizon of 90 days Invesco Exchange Traded is expected to generate 2.34 times more return on investment than Fidelity International. However, Invesco Exchange is 2.34 times more volatile than Fidelity International Multifactor. It trades about 0.09 of its potential returns per unit of risk. Fidelity International Multifactor is currently generating about 0.09 per unit of risk. If you would invest  2,589  in Invesco Exchange Traded on August 4, 2025 and sell it today you would earn a total of  174.00  from holding Invesco Exchange Traded or generate 6.72% return on investment over 90 days.

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

Invesco Exchange Traded  vs.  Fidelity International Multifa

Invesco Exchange Traded

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Exchange Traded are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, Invesco Exchange may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Fidelity International

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity International Multifactor are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable technical and fundamental indicators, Fidelity International is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Invesco Exchange and Fidelity International

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

The idea behind Invesco Exchange Traded and Fidelity International Multifactor 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.