Correlation Between Invesco Energy and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Invesco Energy and Floating Rate 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 Energy and Floating Rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Energy Fund and Floating Rate Fund, you can compare the effects of market volatilities on Invesco Energy and Floating Rate 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 Energy with a short position of Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Energy and Floating Rate.
Diversification Opportunities for Invesco Energy and Floating Rate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Invesco and Floating is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Energy Fund and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate and Invesco Energy 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 Energy Fund are associated (or correlated) with Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Invesco Energy i.e., Invesco Energy and Floating Rate go up and down completely randomly.
Pair Corralation between Invesco Energy and Floating Rate
Assuming the 90 days horizon Invesco Energy is expected to generate 1.33 times less return on investment than Floating Rate. In addition to that, Invesco Energy is 7.29 times more volatile than Floating Rate Fund. It trades about 0.02 of its total potential returns per unit of risk. Floating Rate Fund is currently generating about 0.17 per unit of volatility. If you would invest 696.00 in Floating Rate Fund on June 5, 2025 and sell it today you would earn a total of 111.00 from holding Floating Rate Fund or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Invesco Energy Fund vs. Floating Rate Fund
Performance |
| Timeline |
| Invesco Energy |
| Floating Rate |
Invesco Energy and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Energy and Floating Rate
The main advantage of trading using opposite Invesco Energy and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Energy position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Invesco Energy vs. Barings Active Short | Invesco Energy vs. Omni Small Cap Value | Invesco Energy vs. Ab Global Risk | Invesco Energy vs. Rbc Emerging Markets |
| Floating Rate vs. T Rowe Price | Floating Rate vs. Short Duration Inflation | Floating Rate vs. Schwab Treasury Inflation | Floating Rate vs. Federated Hermes Inflation |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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