Correlation Between Invesco Senior and Aberdeen Total
Can any of the company-specific risk be diversified away by investing in both Invesco Senior and Aberdeen Total 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 Senior and Aberdeen Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Senior Income and Aberdeen Total Dynamic, you can compare the effects of market volatilities on Invesco Senior and Aberdeen Total 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 Senior with a short position of Aberdeen Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Senior and Aberdeen Total.
Diversification Opportunities for Invesco Senior and Aberdeen Total
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and Aberdeen is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Senior Income and Aberdeen Total Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Total Dynamic and Invesco Senior 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 Senior Income are associated (or correlated) with Aberdeen Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Total Dynamic has no effect on the direction of Invesco Senior i.e., Invesco Senior and Aberdeen Total go up and down completely randomly.
Pair Corralation between Invesco Senior and Aberdeen Total
Considering the 90-day investment horizon Invesco Senior Income is expected to generate 1.02 times more return on investment than Aberdeen Total. However, Invesco Senior is 1.02 times more volatile than Aberdeen Total Dynamic. It trades about 0.12 of its potential returns per unit of risk. Aberdeen Total Dynamic is currently generating about -0.02 per unit of risk. If you would invest 384.00 in Invesco Senior Income on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Invesco Senior Income or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Senior Income vs. Aberdeen Total Dynamic
Performance |
| Timeline |
| Invesco Senior Income |
| Aberdeen Total Dynamic |
Invesco Senior and Aberdeen Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Senior and Aberdeen Total
The main advantage of trading using opposite Invesco Senior and Aberdeen Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Senior position performs unexpectedly, Aberdeen Total 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 Aberdeen Total will offset losses from the drop in Aberdeen Total's long position.| Invesco Senior vs. Nuveen Floating Rate | Invesco Senior vs. Blackrock Muni Intermediate | Invesco Senior vs. Eaton Vance Senior | Invesco Senior vs. BlackRock Floating Rate |
| Aberdeen Total vs. Aberdeen Global Premier | Aberdeen Total vs. Alliancebernstein National Municipal | Aberdeen Total vs. Aberdeen Standard Global | Aberdeen Total vs. Aberdeen Global Dynamic |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |