Correlation Between Invesco Floating and Selected American
Can any of the company-specific risk be diversified away by investing in both Invesco Floating and Selected American 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 Floating and Selected American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Floating Rate and Selected American Shares, you can compare the effects of market volatilities on Invesco Floating and Selected American 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 Selected American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Floating and Selected American.
Diversification Opportunities for Invesco Floating and Selected American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Invesco and Selected is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Floating Rate and Selected American Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selected American Shares 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 Selected American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selected American Shares has no effect on the direction of Invesco Floating i.e., Invesco Floating and Selected American go up and down completely randomly.
Pair Corralation between Invesco Floating and Selected American
If you would invest 3,392 in Selected American Shares on April 24, 2025 and sell it today you would earn a total of 466.00 from holding Selected American Shares or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Invesco Floating Rate vs. Selected American Shares
Performance |
| Timeline |
| Invesco Floating Rate |
Risk-Adjusted Performance
Solid
Weak | Strong |
| Selected American Shares |
Invesco Floating and Selected American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Floating and Selected American
The main advantage of trading using opposite Invesco Floating and Selected American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Floating position performs unexpectedly, Selected American 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 Selected American will offset losses from the drop in Selected American's long position.| Invesco Floating vs. Fidelity Money Market | Invesco Floating vs. Cref Money Market | Invesco Floating vs. Aig Government Money | Invesco Floating vs. Cavanal Hill Funds |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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