Correlation Between Invesco Bloomberg and SPDR Kensho

Can any of the company-specific risk be diversified away by investing in both Invesco Bloomberg and SPDR Kensho 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 Bloomberg and SPDR Kensho into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Invesco Bloomberg Pricing and SPDR Kensho Clean, you can compare the effects of market volatilities on Invesco Bloomberg and SPDR Kensho 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 Bloomberg with a short position of SPDR Kensho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Bloomberg and SPDR Kensho.

Diversification Opportunities for Invesco Bloomberg and SPDR Kensho

0.72

Correlation Coefficient

Invesco Bloomberg  SPDR Kensho

Poor diversification

The 3 months correlation between Invesco and SPDR is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Bloomberg Pricing and SPDR Kensho Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Kensho Clean and Invesco Bloomberg 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 Bloomberg Pricing are associated (or correlated) with SPDR Kensho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Kensho Clean has no effect on the direction of Invesco Bloomberg i.e., Invesco Bloomberg and SPDR Kensho go up and down completely randomly.

Pair Corralation between Invesco Bloomberg and SPDR Kensho

Given the investment horizon of 90 days Invesco Bloomberg is expected to generate 18.23 times less return on investment than SPDR Kensho. But when comparing it to its historical volatility, Invesco Bloomberg Pricing is 3.41 times less risky than SPDR Kensho. It trades about 0.06 of its potential returns per unit of risk. SPDR Kensho Clean is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  6,669  in SPDR Kensho Clean on August 4, 2025 and sell it today you would earn a total of  3,435  from holding SPDR Kensho Clean or generate 51.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Invesco Bloomberg Pricing  vs.  SPDR Kensho Clean

Invesco Bloomberg Pricing

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Bloomberg Pricing are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Invesco Bloomberg is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

SPDR Kensho Clean

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Kensho Clean are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SPDR Kensho reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Invesco Bloomberg and SPDR Kensho

The main advantage of trading using opposite Invesco Bloomberg and SPDR Kensho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Bloomberg position performs unexpectedly, SPDR Kensho 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 Kensho will offset losses from the drop in SPDR Kensho's long position.

The idea behind Invesco Bloomberg Pricing and SPDR Kensho Clean pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.