Correlation Between VanEck Short and IndexIQ
Can any of the company-specific risk be diversified away by investing in both VanEck Short 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 VanEck Short and IndexIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Short Muni and IndexIQ, you can compare the effects of market volatilities on VanEck Short 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 VanEck Short with a short position of IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Short and IndexIQ.
Diversification Opportunities for VanEck Short and IndexIQ
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between VanEck and IndexIQ is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Short Muni and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ and VanEck Short 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 VanEck Short Muni 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 VanEck Short i.e., VanEck Short and IndexIQ go up and down completely randomly.
Pair Corralation between VanEck Short and IndexIQ
If you would invest (100.00) in IndexIQ on December 30, 2023 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 |
VanEck Short Muni vs. IndexIQ
Performance |
Timeline |
VanEck Short Muni |
IndexIQ |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
VanEck Short and IndexIQ Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VanEck Short and IndexIQ
The main advantage of trading using opposite VanEck Short and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Short 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.VanEck Short vs. SSGA Active Trust | VanEck Short vs. SPDR Nuveen Municipal | VanEck Short vs. Xtrackers California Municipal | VanEck Short vs. IShares Short Maturity |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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