Correlation Between Nuveen Floating and Invesco Senior
Can any of the company-specific risk be diversified away by investing in both Nuveen Floating and Invesco Senior 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 Nuveen Floating and Invesco Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Floating Rate and Invesco Senior Income, you can compare the effects of market volatilities on Nuveen Floating and Invesco Senior 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 Nuveen Floating with a short position of Invesco Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Floating and Invesco Senior.
Diversification Opportunities for Nuveen Floating and Invesco Senior
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuveen and Invesco is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Floating Rate and Invesco Senior Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Senior Income and Nuveen 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 Nuveen Floating Rate are associated (or correlated) with Invesco Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Senior Income has no effect on the direction of Nuveen Floating i.e., Nuveen Floating and Invesco Senior go up and down completely randomly.
Pair Corralation between Nuveen Floating and Invesco Senior
Considering the 90-day investment horizon Nuveen Floating Rate is expected to generate 0.72 times more return on investment than Invesco Senior. However, Nuveen Floating Rate is 1.38 times less risky than Invesco Senior. It trades about 0.13 of its potential returns per unit of risk. Invesco Senior Income is currently generating about 0.03 per unit of risk. If you would invest 767.00 in Nuveen Floating Rate on August 28, 2024 and sell it today you would earn a total of 135.00 from holding Nuveen Floating Rate or generate 17.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Nuveen Floating Rate vs. Invesco Senior Income
Performance |
| Timeline |
| Nuveen Floating Rate |
| Invesco Senior Income |
Nuveen Floating and Invesco Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Floating and Invesco Senior
The main advantage of trading using opposite Nuveen Floating and Invesco Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Floating position performs unexpectedly, Invesco Senior 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 Senior will offset losses from the drop in Invesco Senior's long position.| Nuveen Floating vs. Pioneer Floating Rate | Nuveen Floating vs. BlackRock Floating Rate | Nuveen Floating vs. Blackrock Muni Intermediate | Nuveen Floating vs. Eaton Vance Senior |
| Invesco Senior vs. Nuveen Floating Rate | Invesco Senior vs. Blackrock Muni Intermediate | Invesco Senior vs. Eaton Vance Senior | Invesco Senior vs. BlackRock Floating Rate |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |