Correlation Between BSAE and Invesco
Can any of the company-specific risk be diversified away by investing in both BSAE and Invesco 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 BSAE and Invesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BSAE and Invesco, you can compare the effects of market volatilities on BSAE and Invesco 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 BSAE with a short position of Invesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSAE and Invesco.
Diversification Opportunities for BSAE and Invesco
Pay attention - limited upside
The 3 months correlation between BSAE and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BSAE and Invesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco and BSAE 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 BSAE are associated (or correlated) with Invesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco has no effect on the direction of BSAE i.e., BSAE and Invesco go up and down completely randomly.
Pair Corralation between BSAE and Invesco
If you would invest (100.00) in Invesco on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Invesco or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BSAE vs. Invesco
Performance |
| Timeline |
| BSAE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Invesco |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BSAE and Invesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BSAE and Invesco
The main advantage of trading using opposite BSAE and Invesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSAE position performs unexpectedly, Invesco 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 Invesco will offset losses from the drop in Invesco's long position.| BSAE vs. SPDR SSGA Fixed | BSAE vs. SPDR Series Trust | BSAE vs. SSGA Active Trust | BSAE vs. SPDR DoubleLine Short |
| Invesco vs. SPDR SSGA Fixed | Invesco vs. SPDR Series Trust | Invesco vs. SSGA Active Trust | Invesco vs. SPDR DoubleLine Short |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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