Correlation Between GEE and Invesco QQQ

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

Diversification Opportunities for GEE and Invesco QQQ

  Correlation Coefficient

Very weak diversification

The 3 months correlation between GEE and Invesco is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding GEE Group 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 GEE 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 GEE Group 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 GEE i.e., GEE and Invesco QQQ go up and down completely randomly.

Pair Corralation between GEE and Invesco QQQ

Considering the 90-day investment horizon GEE Group is expected to generate 0.98 times more return on investment than Invesco QQQ. However, GEE Group is 1.02 times less risky than Invesco QQQ. It trades about 0.37 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  67.00  in GEE Group on September 2, 2022 and sell it today you would earn a total of  13.00  from holding GEE Group or generate 19.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

GEE Group  vs.  Invesco QQQ Trust

 Performance (%) 
GEE Group 
GEE Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in GEE Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, GEE sustained solid returns over the last few months and may actually be approaching a breakup point.

GEE 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

GEE and Invesco QQQ Volatility Contrast

   Predicted Return Density   

Pair Trading with GEE and Invesco QQQ

The main advantage of trading using opposite GEE and Invesco QQQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEE 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.
GEE vs. Walt Disney
The idea behind GEE Group 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Equity Valuation
Check real value of public entities based on technical and fundamental data
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk