Correlation Between Invesco Advantage and Bain Capital
Can any of the company-specific risk be diversified away by investing in both Invesco Advantage 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 Advantage 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 Advantage MIT and Bain Capital Specialty, you can compare the effects of market volatilities on Invesco Advantage 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 Advantage with a short position of Bain Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Advantage and Bain Capital.
Diversification Opportunities for Invesco Advantage and Bain Capital
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Invesco and Bain is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Advantage MIT 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 Advantage 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 Advantage MIT 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 Advantage i.e., Invesco Advantage and Bain Capital go up and down completely randomly.
Pair Corralation between Invesco Advantage and Bain Capital
Considering the 90-day investment horizon Invesco Advantage MIT is expected to generate 0.64 times more return on investment than Bain Capital. However, Invesco Advantage MIT is 1.55 times less risky than Bain Capital. It trades about 0.16 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 882.00 in Invesco Advantage MIT on August 28, 2024 and sell it today you would earn a total of 18.00 from holding Invesco Advantage MIT or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Advantage MIT vs. Bain Capital Specialty
Performance |
| Timeline |
| Invesco Advantage MIT |
| Bain Capital Specialty |
Invesco Advantage and Bain Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Advantage and Bain Capital
The main advantage of trading using opposite Invesco Advantage and Bain Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Advantage 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 Advantage vs. PowerUp Acquisition Corp | Invesco Advantage vs. Aurora Innovation | Invesco Advantage vs. HUMANA INC | Invesco Advantage vs. Aquagold International |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |