Correlation Between Invesco QQQ and InTest

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

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

Diversification Opportunities for Invesco QQQ and InTest

0.77

Correlation Coefficient

Invesco QQQ  InTest

Poor diversification

The 3 months correlation between Invesco and InTest is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Invesco QQQ Trust and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest and Invesco QQQ 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 QQQ Trust are associated (or correlated) with InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Invesco QQQ i.e., Invesco QQQ and InTest go up and down completely randomly.

Pair Corralation between Invesco QQQ and InTest

Considering the 90-day investment horizon Invesco QQQ is expected to generate 1.28 times less return on investment than InTest. But when comparing it to its historical volatility, Invesco QQQ Trust is 3.2 times less risky than InTest. It trades about 0.09 of its potential returns per unit of risk. inTest is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  739.00  in inTest on August 26, 2025 and sell it today you would earn a total of  30.00  from holding inTest or generate 4.06% return on investment over 90 days.

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

Invesco QQQ Trust  vs.  inTest

Invesco QQQ Trust

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco QQQ Trust are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Invesco QQQ is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

inTest

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in inTest are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, InTest may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Invesco QQQ and InTest

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

The idea behind Invesco QQQ Trust and inTest 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..