Correlation Between Invesco Senior and SPDR Blackstone
Can any of the company-specific risk be diversified away by investing in both Invesco Senior and SPDR Blackstone 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 Senior and SPDR Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Senior Loan and SPDR Blackstone Senior, you can compare the effects of market volatilities on Invesco Senior and SPDR Blackstone 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 Senior with a short position of SPDR Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Senior and SPDR Blackstone.
Diversification Opportunities for Invesco Senior and SPDR Blackstone
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Invesco and SPDR is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Senior Loan and SPDR Blackstone Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Blackstone Senior and Invesco Senior 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 Senior Loan are associated (or correlated) with SPDR Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Blackstone Senior has no effect on the direction of Invesco Senior i.e., Invesco Senior and SPDR Blackstone go up and down completely randomly.
Pair Corralation between Invesco Senior and SPDR Blackstone
Given the investment horizon of 90 days Invesco Senior Loan is expected to generate 1.14 times more return on investment than SPDR Blackstone. However, Invesco Senior is 1.14 times more volatile than SPDR Blackstone Senior. It trades about 0.34 of its potential returns per unit of risk. SPDR Blackstone Senior is currently generating about 0.34 per unit of risk. If you would invest 2,095 in Invesco Senior Loan on November 3, 2024 and sell it today you would earn a total of 12.00 from holding Invesco Senior Loan or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Senior Loan vs. SPDR Blackstone Senior
Performance |
| Timeline |
| Invesco Senior Loan |
| SPDR Blackstone Senior |
Invesco Senior and SPDR Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Senior and SPDR Blackstone
The main advantage of trading using opposite Invesco Senior and SPDR Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Senior position performs unexpectedly, SPDR Blackstone 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 SPDR Blackstone will offset losses from the drop in SPDR Blackstone's long position.| Invesco Senior vs. Pacer Cash Cows | Invesco Senior vs. First Trust SSI | Invesco Senior vs. Franklin Liberty Senior | Invesco Senior vs. SPDR Bloomberg Convertible |
| SPDR Blackstone vs. Invesco Senior Loan | SPDR Blackstone vs. First Trust Senior | SPDR Blackstone vs. SPDR Bloomberg Short | SPDR Blackstone vs. SPDR Bloomberg Investment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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