Correlation Between Lind Capital and Invesco Senior
Can any of the company-specific risk be diversified away by investing in both Lind Capital 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 Lind Capital and Invesco Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lind Capital Partners and Invesco Senior Income, you can compare the effects of market volatilities on Lind Capital 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 Lind Capital with a short position of Invesco Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lind Capital and Invesco Senior.
Diversification Opportunities for Lind Capital and Invesco Senior
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lind and Invesco is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lind Capital Partners 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 Lind Capital 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 Lind Capital Partners 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 Lind Capital i.e., Lind Capital and Invesco Senior go up and down completely randomly.
Pair Corralation between Lind Capital and Invesco Senior
Assuming the 90 days horizon Lind Capital Partners is expected to generate 1.12 times more return on investment than Invesco Senior. However, Lind Capital is 1.12 times more volatile than Invesco Senior Income. It trades about 0.13 of its potential returns per unit of risk. Invesco Senior Income is currently generating about -0.05 per unit of risk. If you would invest 826.00 in Lind Capital Partners on September 12, 2024 and sell it today you would earn a total of 76.00 from holding Lind Capital Partners or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lind Capital Partners vs. Invesco Senior Income
Performance |
| Timeline |
| Lind Capital Partners |
| Invesco Senior Income |
Lind Capital and Invesco Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lind Capital and Invesco Senior
The main advantage of trading using opposite Lind Capital and Invesco Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lind Capital 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.| Lind Capital vs. Blackrock Financial Institutions | Lind Capital vs. Prudential Jennison Financial | Lind Capital vs. John Hancock Financial | Lind Capital vs. 1919 Financial Services |
| Invesco Senior vs. Short Real Estate | Invesco Senior vs. Simt Real Estate | Invesco Senior vs. Vy Clarion Real | Invesco Senior vs. Goldman Sachs Real |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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