Correlation Between WEEK and Invesco KBW

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

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

Diversification Opportunities for WEEK and Invesco KBW

0.83

Correlation Coefficient

WEEK  Invesco KBW

Very poor diversification

The 3 months correlation between WEEK and Invesco is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding WEEK and Invesco KBW Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco KBW Property and WEEK 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 WEEK are associated (or correlated) with Invesco KBW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco KBW Property has no effect on the direction of WEEK i.e., WEEK and Invesco KBW go up and down completely randomly.

Pair Corralation between WEEK and Invesco KBW

Given the investment horizon of 90 days WEEK is expected to generate 4.9 times less return on investment than Invesco KBW. But when comparing it to its historical volatility, WEEK is 34.07 times less risky than Invesco KBW. It trades about 0.63 of its potential returns per unit of risk. Invesco KBW Property is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  11,655  in Invesco KBW Property on July 15, 2025 and sell it today you would earn a total of  577.00  from holding Invesco KBW Property or generate 4.95% return on investment over 90 days.

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

WEEK  vs.  Invesco KBW Property

WEEK

Risk-Adjusted Performance

Prime

Compared to the overall equity markets, risk-adjusted returns on investments in WEEK are ranked lower than 49 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, WEEK is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Invesco KBW Property

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco KBW Property are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Invesco KBW is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with WEEK and Invesco KBW

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

The idea behind WEEK and Invesco KBW Property 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 Global Correlations module to find global opportunities by holding instruments from different markets.