Correlation Between Invesco High and Swiss Re
Can any of the company-specific risk be diversified away by investing in both Invesco High and Swiss Re 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 High and Swiss Re into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco High Income and Swiss Re, you can compare the effects of market volatilities on Invesco High and Swiss Re 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 High with a short position of Swiss Re. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco High and Swiss Re.
Diversification Opportunities for Invesco High and Swiss Re
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Invesco and Swiss is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Invesco High Income and Swiss Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Re and Invesco High 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 High Income are associated (or correlated) with Swiss Re. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Re has no effect on the direction of Invesco High i.e., Invesco High and Swiss Re go up and down completely randomly.
Pair Corralation between Invesco High and Swiss Re
Given the investment horizon of 90 days Invesco High is expected to generate 1.44 times less return on investment than Swiss Re. But when comparing it to its historical volatility, Invesco High Income is 3.06 times less risky than Swiss Re. It trades about 0.18 of its potential returns per unit of risk. Swiss Re is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,770 in Swiss Re on August 24, 2024 and sell it today you would earn a total of 799.00 from holding Swiss Re or generate 28.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Invesco High Income vs. Swiss Re
Performance |
| Timeline |
| Invesco High Income |
| Swiss Re |
Invesco High and Swiss Re Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco High and Swiss Re
The main advantage of trading using opposite Invesco High and Swiss Re positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco High position performs unexpectedly, Swiss Re 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 Swiss Re will offset losses from the drop in Swiss Re's long position.| Invesco High vs. MFS Investment Grade | Invesco High vs. Eaton Vance National | Invesco High vs. Nuveen California Select | Invesco High vs. Federated Premier Municipal |
| Swiss Re vs. Invesco High Income | Swiss Re vs. Blackrock Muniholdings Ny | Swiss Re vs. MFS Investment Grade | Swiss Re vs. Federated Premier Municipal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |