Correlation Between SPDR Barclays and Invesco
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and Invesco 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 Barclays and Invesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Short and Invesco, you can compare the effects of market volatilities on SPDR Barclays and Invesco 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 Barclays with a short position of Invesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Invesco.
Diversification Opportunities for SPDR Barclays and Invesco
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and Invesco is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Short and Invesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco and SPDR Barclays 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 Barclays Short are associated (or correlated) with Invesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Invesco go up and down completely randomly.
Pair Corralation between SPDR Barclays and Invesco
If you would invest 2,891 in SPDR Barclays Short on September 14, 2024 and sell it today you would earn a total of 14.00 from holding SPDR Barclays Short or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
SPDR Barclays Short vs. Invesco
Performance |
| Timeline |
| SPDR Barclays Short |
| Invesco |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Barclays and Invesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Invesco
The main advantage of trading using opposite SPDR Barclays and Invesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, Invesco 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 will offset losses from the drop in Invesco's long position.| SPDR Barclays vs. SPDR Barclays Long | SPDR Barclays vs. SPDR Portfolio Intermediate | SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. SPDR Barclays Intermediate |
| Invesco vs. Goldman Sachs Access | Invesco vs. SPDR Barclays Short | Invesco vs. iShares 0 3 Month | Invesco vs. iShares Treasury Floating |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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