Correlation Between SPLX and IndexIQ
Can any of the company-specific risk be diversified away by investing in both SPLX 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 SPLX and IndexIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPLX and IndexIQ, you can compare the effects of market volatilities on SPLX 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 SPLX with a short position of IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPLX and IndexIQ.
Diversification Opportunities for SPLX and IndexIQ
Pay attention - limited upside
The 3 months correlation between SPLX and IndexIQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPLX and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ and SPLX 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 SPLX 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 SPLX i.e., SPLX and IndexIQ go up and down completely randomly.
Pair Corralation between SPLX and IndexIQ
If you would invest (100.00) in IndexIQ on January 20, 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 | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SPLX vs. IndexIQ
Performance |
Timeline |
SPLX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPLX and IndexIQ Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPLX and IndexIQ
The main advantage of trading using opposite SPLX and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPLX 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.SPLX vs. Vanguard Total Stock | SPLX vs. SPDR SP 500 | SPLX vs. iShares Core SP | SPLX vs. Vanguard Total Bond |
IndexIQ vs. Dimensional Targeted Value | IndexIQ vs. Dimensional World ex | IndexIQ vs. Dimensional Small Cap |
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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