Correlation Between IndexIQ and Listed Funds
Can any of the company-specific risk be diversified away by investing in both IndexIQ and Listed Funds 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 IndexIQ and Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IndexIQ and Listed Funds Trust, you can compare the effects of market volatilities on IndexIQ and Listed Funds 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 IndexIQ with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of IndexIQ and Listed Funds.
Diversification Opportunities for IndexIQ and Listed Funds
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IndexIQ and Listed is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust and IndexIQ 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 IndexIQ are associated (or correlated) with Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of IndexIQ i.e., IndexIQ and Listed Funds go up and down completely randomly.
Pair Corralation between IndexIQ and Listed Funds
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 | Moves Together |
Strength | Weak |
Accuracy | 0.0% |
Values | Daily Returns |
IndexIQ vs. Listed Funds Trust
Performance |
Timeline |
IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Listed Funds Trust |
IndexIQ and Listed Funds Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IndexIQ and Listed Funds
The main advantage of trading using opposite IndexIQ and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IndexIQ position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' long position.IndexIQ vs. VanEck Inflation Allocation | IndexIQ vs. Simplify Interest Rate | IndexIQ vs. Quadratic Deflation ETF | IndexIQ vs. Investment Managers Series |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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