Correlation Between SPDR Blackstone and Invesco Senior
Can any of the company-specific risk be diversified away by investing in both SPDR Blackstone 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 Blackstone 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 Blackstone Senior and Invesco Senior Loan, you can compare the effects of market volatilities on SPDR Blackstone 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 Blackstone with a short position of Invesco Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Blackstone and Invesco Senior.
Diversification Opportunities for SPDR Blackstone and Invesco Senior
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPDR and Invesco is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Blackstone Senior 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 Blackstone 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 Blackstone Senior 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 Blackstone i.e., SPDR Blackstone and Invesco Senior go up and down completely randomly.
Pair Corralation between SPDR Blackstone and Invesco Senior
Given the investment horizon of 90 days SPDR Blackstone is expected to generate 1.13 times less return on investment than Invesco Senior. In addition to that, SPDR Blackstone is 1.16 times more volatile than Invesco Senior Loan. It trades about 0.31 of its total potential returns per unit of risk. Invesco Senior Loan is currently generating about 0.4 per unit of volatility. If you would invest 2,088 in Invesco Senior Loan on August 30, 2024 and sell it today you would earn a total of 21.00 from holding Invesco Senior Loan or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Blackstone Senior vs. Invesco Senior Loan
Performance |
| Timeline |
| SPDR Blackstone Senior |
| Invesco Senior Loan |
SPDR Blackstone and Invesco Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Blackstone and Invesco Senior
The main advantage of trading using opposite SPDR Blackstone and Invesco Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Blackstone 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 Blackstone vs. Invesco Senior Loan | SPDR Blackstone vs. First Trust Senior | SPDR Blackstone vs. SPDR Bloomberg Short | SPDR Blackstone vs. SPDR Bloomberg Investment |
| Invesco Senior vs. Franklin Liberty High | Invesco Senior vs. Pacer Pacific Asset | Invesco Senior vs. First Trust Senior | Invesco Senior vs. Franklin Liberty International |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |