Correlation Between Invesco Floating and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Invesco Floating and Mainstay Convertible 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 Floating and Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Floating Rate and Mainstay Vertible Fund, you can compare the effects of market volatilities on Invesco Floating and Mainstay Convertible 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 Floating with a short position of Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Floating and Mainstay Convertible.
Diversification Opportunities for Invesco Floating and Mainstay Convertible
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Invesco and Mainstay is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Floating Rate and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible and Invesco Floating 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 Floating Rate are associated (or correlated) with Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Invesco Floating i.e., Invesco Floating and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Invesco Floating and Mainstay Convertible
Assuming the 90 days horizon Invesco Floating Rate is expected to generate 0.17 times more return on investment than Mainstay Convertible. However, Invesco Floating Rate is 6.06 times less risky than Mainstay Convertible. It trades about -0.07 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about -0.11 per unit of risk. If you would invest 669.00 in Invesco Floating Rate on October 18, 2024 and sell it today you would lose (1.00) from holding Invesco Floating Rate or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Floating Rate vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Invesco Floating Rate |
| Mainstay Convertible |
Invesco Floating and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Floating and Mainstay Convertible
The main advantage of trading using opposite Invesco Floating and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Floating position performs unexpectedly, Mainstay Convertible 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 Mainstay Convertible will offset losses from the drop in Mainstay Convertible's long position.| Invesco Floating vs. Mainstay Vertible Fund | Invesco Floating vs. Virtus Convertible | Invesco Floating vs. Rationalpier 88 Convertible | Invesco Floating vs. Advent Claymore Convertible |
| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Sp 500 | Mainstay Convertible vs. Mainstay Large Cap |
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 the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |