Correlation Between Invesco Emerging and SPDR Blackstone
Can any of the company-specific risk be diversified away by investing in both Invesco Emerging 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 Emerging 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 Emerging Markets and SPDR Blackstone Senior, you can compare the effects of market volatilities on Invesco Emerging 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 Emerging with a short position of SPDR Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Emerging and SPDR Blackstone.
Diversification Opportunities for Invesco Emerging and SPDR Blackstone
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and SPDR is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Emerging Markets 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 Emerging 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 Emerging Markets 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 Emerging i.e., Invesco Emerging and SPDR Blackstone go up and down completely randomly.
Pair Corralation between Invesco Emerging and SPDR Blackstone
Considering the 90-day investment horizon Invesco Emerging Markets is expected to generate 4.21 times more return on investment than SPDR Blackstone. However, Invesco Emerging is 4.21 times more volatile than SPDR Blackstone Senior. It trades about 0.08 of its potential returns per unit of risk. SPDR Blackstone Senior is currently generating about 0.25 per unit of risk. If you would invest 1,969 in Invesco Emerging Markets on September 1, 2024 and sell it today you would earn a total of 109.00 from holding Invesco Emerging Markets or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Emerging Markets vs. SPDR Blackstone Senior
Performance |
| Timeline |
| Invesco Emerging Markets |
| SPDR Blackstone Senior |
Invesco Emerging and SPDR Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Emerging and SPDR Blackstone
The main advantage of trading using opposite Invesco Emerging and SPDR Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Emerging 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 Emerging vs. iShares JP Morgan | Invesco Emerging vs. SPDR Bloomberg Barclays | Invesco Emerging vs. SPDR DoubleLine Emerging | Invesco Emerging vs. JPMorgan USD Emerging |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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