Correlation Between Invesco Senior and Doubleline Shiller

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

By analyzing existing cross correlation between Invesco Senior Loan and Doubleline Shiller Enhanced, you can compare the effects of market volatilities on Invesco Senior and Doubleline Shiller 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 Senior with a short position of Doubleline Shiller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Senior and Doubleline Shiller.

Diversification Opportunities for Invesco Senior and Doubleline Shiller

0.63

Correlation Coefficient

Invesco Senior  Doubleline Shiller

Poor diversification

The 3 months correlation between Invesco and Doubleline is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Senior Loan and Doubleline Shiller Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Shiller and Invesco Senior 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 Senior Loan are associated (or correlated) with Doubleline Shiller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Shiller has no effect on the direction of Invesco Senior i.e., Invesco Senior and Doubleline Shiller go up and down completely randomly.

Pair Corralation between Invesco Senior and Doubleline Shiller

Assuming the 90 days horizon Invesco Senior is expected to generate 13.4 times less return on investment than Doubleline Shiller. But when comparing it to its historical volatility, Invesco Senior Loan is 4.1 times less risky than Doubleline Shiller. It trades about 0.07 of its potential returns per unit of risk. Doubleline Shiller Enhanced is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,496  in Doubleline Shiller Enhanced on August 31, 2024 and sell it today you would earn a total of  146.00  from holding Doubleline Shiller Enhanced or generate 9.76% return on investment over 90 days.

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

Invesco Senior Loan  vs.  Doubleline Shiller Enhanced

Invesco Senior Loan

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Senior Loan are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Invesco Senior is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Doubleline Shiller

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Shiller Enhanced are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly inconsistent basic indicators, Doubleline Shiller may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Invesco Senior and Doubleline Shiller

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

The idea behind Invesco Senior Loan and Doubleline Shiller Enhanced 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.