Correlation Between Capitol Series and IndexIQ
Can any of the company-specific risk be diversified away by investing in both Capitol Series and IndexIQ 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 Capitol Series and IndexIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capitol Series Trust and IndexIQ, you can compare the effects of market volatilities on Capitol Series and IndexIQ 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 Capitol Series with a short position of IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capitol Series and IndexIQ.
Diversification Opportunities for Capitol Series and IndexIQ
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Capitol and IndexIQ is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Capitol Series Trust and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ and Capitol Series 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 Capitol Series Trust are associated (or correlated) with IndexIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ has no effect on the direction of Capitol Series i.e., Capitol Series and IndexIQ go up and down completely randomly.
Pair Corralation between Capitol Series and IndexIQ
If you would invest (100.00) in IndexIQ on January 26, 2024 and sell it today you would earn a total of 100.00 from holding IndexIQ or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Capitol Series Trust vs. IndexIQ
Performance |
| Timeline |
| Capitol Series Trust |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capitol Series and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capitol Series and IndexIQ
The main advantage of trading using opposite Capitol Series and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capitol Series position performs unexpectedly, IndexIQ 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 IndexIQ will offset losses from the drop in IndexIQ's long position.| Capitol Series vs. Collaborative Investment Series | Capitol Series vs. The Advisorsa Inner | Capitol Series vs. Mohr Growth ETF | Capitol Series vs. Aquagold International |
| IndexIQ vs. Collaborative Investment Series | IndexIQ vs. The Advisorsa Inner | IndexIQ vs. Mohr Growth ETF | IndexIQ vs. Aquagold International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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