Correlation Between Central Puerto and Invesco QQQ

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Central Puerto and Invesco QQQ 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 Central Puerto and Invesco QQQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Puerto and Invesco QQQ Trust, you can compare the effects of market volatilities on Central Puerto and Invesco QQQ 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 Central Puerto with a short position of Invesco QQQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Puerto and Invesco QQQ.

Diversification Opportunities for Central Puerto and Invesco QQQ

-0.25
  Correlation Coefficient

Very good diversification

The 24 months correlation between Central and Invesco is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Central Puerto and Invesco QQQ Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco QQQ Trust and Central Puerto 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 Central Puerto are associated (or correlated) with Invesco QQQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco QQQ Trust has no effect on the direction of Central Puerto i.e., Central Puerto and Invesco QQQ go up and down completely randomly.

Pair Corralation between Central Puerto and Invesco QQQ

Given the investment horizon of 90 days Central Puerto is expected to generate 1.46 times more return on investment than Invesco QQQ. However, Central Puerto is 1.46 times more volatile than Invesco QQQ Trust. It trades about 0.15 of its potential returns per unit of risk. Invesco QQQ Trust is currently generating about 0.14 per unit of risk. If you would invest  493.00  in Central Puerto on September 2, 2022 and sell it today you would earn a total of  52.00  from holding Central Puerto or generate 10.55% return on investment over 90 days.
Time Period24 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Central Puerto  vs.  Invesco QQQ Trust

 Performance (%) 
       Timeline  
Central Puerto 
Central Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Central Puerto are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Central Puerto may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Central Price Channel

Invesco QQQ Trust 
Invesco Performance
0 of 100
Over the last 90 days Invesco QQQ Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Invesco QQQ is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the insiders.

Invesco Price Channel

Central Puerto and Invesco QQQ Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Central Puerto and Invesco QQQ

The main advantage of trading using opposite Central Puerto and Invesco QQQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Puerto position performs unexpectedly, Invesco QQQ 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 QQQ will offset losses from the drop in Invesco QQQ's long position.
Central Puerto vs. Merck Company
Central Puerto vs. Home Depot
Central Puerto vs. 3M Company
Central Puerto vs. American Express
The idea behind Central Puerto and Invesco QQQ Trust 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.
Invesco QQQ vs. Verizon Communications
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go