Correlation Between SPDR Bloomberg and Invesco Senior
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg 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 SPDR Bloomberg and Invesco Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg Short and Invesco Senior Loan, you can compare the effects of market volatilities on SPDR Bloomberg 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 SPDR Bloomberg with a short position of Invesco Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and Invesco Senior.
Diversification Opportunities for SPDR Bloomberg and Invesco Senior
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and Invesco is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Short and Invesco Senior Loan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Senior Loan and SPDR Bloomberg 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 SPDR Bloomberg Short 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 Loan has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and Invesco Senior go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and Invesco Senior
Given the investment horizon of 90 days SPDR Bloomberg Short is expected to generate 2.08 times more return on investment than Invesco Senior. However, SPDR Bloomberg is 2.08 times more volatile than Invesco Senior Loan. It trades about 0.2 of its potential returns per unit of risk. Invesco Senior Loan is currently generating about 0.11 per unit of risk. If you would invest 2,535 in SPDR Bloomberg Short on November 18, 2024 and sell it today you would earn a total of 18.00 from holding SPDR Bloomberg Short or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Bloomberg Short vs. Invesco Senior Loan
Performance |
| Timeline |
| SPDR Bloomberg Short |
| Invesco Senior Loan |
SPDR Bloomberg and Invesco Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and Invesco Senior
The main advantage of trading using opposite SPDR Bloomberg and Invesco Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg 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.| SPDR Bloomberg vs. PIMCO 0 5 Year | SPDR Bloomberg vs. iShares 0 5 Year | SPDR Bloomberg vs. Invesco Senior Loan | SPDR Bloomberg vs. SPDR Blackstone Senior |
| Invesco Senior vs. VanEck Vectors Moodys | Invesco Senior vs. BondBloxx ETF Trust | Invesco Senior vs. Vanguard ESG Corporate | Invesco Senior vs. Pacer Cash Cows |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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