Correlation Between Invesco California and Bain Capital
Can any of the company-specific risk be diversified away by investing in both Invesco California and Bain Capital 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 California and Bain Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco California Value and Bain Capital Specialty, you can compare the effects of market volatilities on Invesco California and Bain Capital 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 California with a short position of Bain Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco California and Bain Capital.
Diversification Opportunities for Invesco California and Bain Capital
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invesco and Bain is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Invesco California Value and Bain Capital Specialty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bain Capital Specialty and Invesco California 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 California Value are associated (or correlated) with Bain Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bain Capital Specialty has no effect on the direction of Invesco California i.e., Invesco California and Bain Capital go up and down completely randomly.
Pair Corralation between Invesco California and Bain Capital
Considering the 90-day investment horizon Invesco California Value is expected to generate 0.77 times more return on investment than Bain Capital. However, Invesco California Value is 1.3 times less risky than Bain Capital. It trades about 0.13 of its potential returns per unit of risk. Bain Capital Specialty is currently generating about 0.01 per unit of risk. If you would invest 1,018 in Invesco California Value on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Invesco California Value or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco California Value vs. Bain Capital Specialty
Performance |
| Timeline |
| Invesco California Value |
| Bain Capital Specialty |
Invesco California and Bain Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco California and Bain Capital
The main advantage of trading using opposite Invesco California and Bain Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco California position performs unexpectedly, Bain Capital 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 Bain Capital will offset losses from the drop in Bain Capital's long position.| Invesco California vs. Pimco California Municipal | Invesco California vs. Invesco Pennsylvania Value | Invesco California vs. Nuveen California Dividend | Invesco California vs. Invesco Advantage MIT |
| Bain Capital vs. BlackRock TCP Capital | Bain Capital vs. Triplepoint Venture Growth | Bain Capital vs. Sixth Street Specialty | Bain Capital vs. Golub Capital BDC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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