Correlation Between Invesco Variable and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Invesco Variable and SPDR Barclays 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 Variable and SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Variable Rate and SPDR Barclays Long, you can compare the effects of market volatilities on Invesco Variable and SPDR Barclays 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 Variable with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Variable and SPDR Barclays.
Diversification Opportunities for Invesco Variable and SPDR Barclays
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Invesco and SPDR is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Variable Rate and SPDR Barclays Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Long and Invesco Variable 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 Variable Rate are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Long has no effect on the direction of Invesco Variable i.e., Invesco Variable and SPDR Barclays go up and down completely randomly.
Pair Corralation between Invesco Variable and SPDR Barclays
Given the investment horizon of 90 days Invesco Variable is expected to generate 3.43 times less return on investment than SPDR Barclays. But when comparing it to its historical volatility, Invesco Variable Rate is 22.8 times less risky than SPDR Barclays. It trades about 0.52 of its potential returns per unit of risk. SPDR Barclays Long is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,296 in SPDR Barclays Long on August 31, 2024 and sell it today you would earn a total of 33.00 from holding SPDR Barclays Long or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Variable Rate vs. SPDR Barclays Long
Performance |
| Timeline |
| Invesco Variable Rate |
| SPDR Barclays Long |
Invesco Variable and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Variable and SPDR Barclays
The main advantage of trading using opposite Invesco Variable and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Variable position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| Invesco Variable vs. iShares ESG 1 5 | Invesco Variable vs. First Trust Low | Invesco Variable vs. First Trust Managed | Invesco Variable vs. First Trust Enhanced |
| SPDR Barclays vs. iShares 10 Year | SPDR Barclays vs. SPDR Barclays Intermediate | SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. FlexShares Credit Scored Long |
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 CEOs Directory module to screen CEOs from public companies around the world.
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