Correlation Between Invesco Floating and NISOURCE
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By analyzing existing cross correlation between Invesco Floating Rate and NISOURCE FIN P, you can compare the effects of market volatilities on Invesco Floating and NISOURCE 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 Floating with a short position of NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Floating and NISOURCE.
Diversification Opportunities for Invesco Floating and NISOURCE
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invesco and NISOURCE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Floating Rate and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN P and Invesco Floating 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 Floating Rate are associated (or correlated) with NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of Invesco Floating i.e., Invesco Floating and NISOURCE go up and down completely randomly.
Pair Corralation between Invesco Floating and NISOURCE
Assuming the 90 days horizon Invesco Floating is expected to generate 54.15 times less return on investment than NISOURCE. But when comparing it to its historical volatility, Invesco Floating Rate is 235.26 times less risky than NISOURCE. It trades about 0.18 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,488 in NISOURCE FIN P on September 23, 2024 and sell it today you would earn a total of 135.00 from holding NISOURCE FIN P or generate 1.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 91.15% |
Values | Daily Returns |
Invesco Floating Rate vs. NISOURCE FIN P
Performance |
Timeline |
Invesco Floating Rate |
NISOURCE FIN P |
Invesco Floating and NISOURCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Invesco Floating and NISOURCE
The main advantage of trading using opposite Invesco Floating and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Floating position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE's long position.Invesco Floating vs. Invesco Municipal Income | Invesco Floating vs. Invesco Municipal Income | Invesco Floating vs. Invesco Municipal Income | Invesco Floating vs. Oppenheimer Rising Dividends |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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