Correlation Between Invesco Senior and Nuveen Floating
Can any of the company-specific risk be diversified away by investing in both Invesco Senior and Nuveen Floating 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 Nuveen Floating 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 Nuveen Floating Rate, you can compare the effects of market volatilities on Invesco Senior and Nuveen Floating 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 Nuveen Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Senior and Nuveen Floating.
Diversification Opportunities for Invesco Senior and Nuveen Floating
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invesco and Nuveen is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Senior Income and Nuveen Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Floating Rate 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 Nuveen Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Floating Rate has no effect on the direction of Invesco Senior i.e., Invesco Senior and Nuveen Floating go up and down completely randomly.
Pair Corralation between Invesco Senior and Nuveen Floating
Considering the 90-day investment horizon Invesco Senior Income is expected to generate 1.05 times more return on investment than Nuveen Floating. However, Invesco Senior is 1.05 times more volatile than Nuveen Floating Rate. It trades about 0.07 of its potential returns per unit of risk. Nuveen Floating Rate is currently generating about 0.03 per unit of risk. If you would invest 296.00 in Invesco Senior Income on August 28, 2024 and sell it today you would earn a total of 94.00 from holding Invesco Senior Income or generate 31.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.72% |
| Values | Daily Returns |
Invesco Senior Income vs. Nuveen Floating Rate
Performance |
| Timeline |
| Invesco Senior Income |
| Nuveen Floating Rate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Invesco Senior and Nuveen Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Senior and Nuveen Floating
The main advantage of trading using opposite Invesco Senior and Nuveen Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Senior position performs unexpectedly, Nuveen Floating 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 Nuveen Floating will offset losses from the drop in Nuveen Floating'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 |
| Nuveen Floating vs. Nuveen Floating Rate | Nuveen Floating vs. Blackrock Muni Intermediate | Nuveen Floating vs. Eaton Vance Senior | Nuveen Floating vs. Blackrock Floating Rate |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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