diversifiable risk of combining IShares Short and IndexIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares Short Maturity and IndexIQ, you can compare the effects of market volatilities on IShares 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 IShares Short with a short position of IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Short and IndexIQ.
Diversification Opportunities for IShares Short and IndexIQ
Pair Corralation between IShares Short and IndexIQ
If you would invest 5,003 in IShares Short Maturity on November 24, 2023 and sell it today you would earn a total of 4.00 from holding IShares Short Maturity or generate 0.08% return on investment over 90 days.
|3 Months [change]
IShares Short Maturity vs. IndexIQ
IShares Short and IndexIQ Volatility Contrast
Pair Trading with IShares Short and IndexIQThe main advantage of trading using opposite IShares Short and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares 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. The idea behind IShares Short Maturity and IndexIQ 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.
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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