IndexIQ holds Efficiency (Sharpe) Ratio of -0.24, which attests that the entity had -0.24% return per unit of risk over the last 3 months. Our standpoint towards determining the risk of any etf is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. IndexIQ exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Please check out IndexIQ's Risk Adjusted Performance of (0), downside deviation of 0.3932, and Market Risk Adjusted Performance of 0.1587 to validate the risk estimate we provide. Key indicators related to IndexIQ's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
IndexIQ Etf volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of IndexIQ daily returns, and it is calculated using variance and standard deviation. We also use IndexIQ's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of IndexIQ volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as IndexIQ can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of IndexIQ at lower prices. For example, an investor can purchase IndexIQ stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of IndexIQ's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with IndexIQ Etf
IndexIQ Market Sensitivity And Downside Risk
IndexIQ's beta coefficient measures the volatility of IndexIQ etf compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents IndexIQ etf's returns against your selected market. In other words, IndexIQ's beta of -0.062 provides an investor with an approximation of how much risk IndexIQ etf can potentially add to one of your existing portfolios.IndexIQ exhibits very low volatility with skewness of 0.79 and kurtosis of 2.3. However, we advise investors to further study IndexIQ technical indicators to ensure that all market info is available and is reliable. You can indeed make money on IndexIQ instrument if you perfectly time your entry and exit. However, remember that penny etfs that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals. 3 Months Beta |Analyze IndexIQ Demand TrendCheck current 90 days IndexIQ correlation with market (NYSE Composite)
IndexIQ standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
It is essential to understand the difference between upside risk (as represented by IndexIQ's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of IndexIQ's daily returns or price. Since the actual investment returns on holding a position in indexiq etf tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in IndexIQ.
IndexIQ Etf Volatility Analysis
Volatility refers to the frequency at which IndexIQ etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with IndexIQ's price changes. Investors will then calculate the volatility of IndexIQ's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of IndexIQ's volatility:
Historical VolatilityThis type of etf volatility measures IndexIQ's fluctuations based on previous trends. It's commonly used to predict IndexIQ's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.
Implied VolatilityThis type of volatility provides a positive outlook on future price fluctuations for IndexIQ's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on IndexIQ's to be redeemed at a future date.
IndexIQ Projected Return Density Against MarketConsidering the 90-day investment horizon IndexIQ has a beta of -0.062 suggesting as returns on benchmark increase, returns on holding IndexIQ are expected to decrease at a much lower rate. During the bear market, however, IndexIQ is likely to outperform the market.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to IndexIQ or IndexIQ sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that IndexIQ's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a IndexIQ etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. IndexIQ is significantly underperforming NYSE Composite. IndexIQ's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how indexiq etf's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.
What Drives an IndexIQ Price Volatility?Several factors can influence a etf's market volatility:
IndustrySpecific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.
Political and Economic environmentWhen governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.
The Company's PerformanceSometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.
IndexIQ Etf Risk Measures
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to IndexIQ or IndexIQ sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that IndexIQ's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a IndexIQ etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Considering the 90-day investment horizon the coefficient of variation of IndexIQ is -413.72. The daily returns are distributed with a variance of 588.52 and standard deviation of 24.26. The mean deviation of IndexIQ is currently at 11.07. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
IndexIQ Etf Return VolatilityIndexIQ historical daily return volatility represents how much of IndexIQ etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The Etf has volatility of 24.2594% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6539% volatility on return distribution over the 90 days horizon.
About IndexIQ Volatility
Volatility is a rate at which the price of IndexIQ or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of IndexIQ may increase or decrease. In other words, similar to IndexIQ's beta indicator, it measures the risk of IndexIQ and helps estimate the fluctuations that may happen in a short period of time. So if prices of IndexIQ fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.Please read more on our technical analysis page.
The underlying index seeks to provide investors with a hedge against the inflation rate by providing diversified exposure to assets expected to benefit directly or indirectly from increases in the prices of goods and services that have exhibited positive correlation to the CPI over long-term historical periods. IQ Real is traded on NYSEARCA Exchange in the United States.
IndexIQ's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on IndexIQ Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much IndexIQ's price varies over time.
3 ways to utilize IndexIQ's volatility to invest betterHigher IndexIQ's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of IndexIQ etf is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. IndexIQ etf volatility can provide helpful information for making investment decisions in the following ways:
- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of IndexIQ investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in IndexIQ's etf can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of IndexIQ's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
IndexIQ Investment OpportunityIndexIQ has a volatility of 24.26 and is 37.32 times more volatile than NYSE Composite. 96 of all equities and portfolios are less risky than IndexIQ. Compared to the overall equity markets, volatility of historical daily returns of IndexIQ is higher than 96 () of all global equities and portfolios over the last 90 days. Use IndexIQ to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The etf experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of IndexIQ to be traded at $0.0 in 90 days.
IndexIQ Additional Risk Indicators
The analysis of IndexIQ's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in IndexIQ's investment and either accepting that risk or mitigating it. Along with some common measures of IndexIQ etf's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
IndexIQ Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against IndexIQ as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. IndexIQ's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, IndexIQ's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to IndexIQ.When determining whether IndexIQ offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of IndexIQ's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Indexiq Etf. Outlined below are crucial reports that will aid in making a well-informed decision on Indexiq Etf:
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any ETF could be tightly coupled with the direction of predictive economic indicators such as signals in persons.You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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When running IndexIQ's price analysis, check to measure IndexIQ's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy IndexIQ is operating at the current time. Most of IndexIQ's value examination focuses on studying past and present price action to predict the probability of IndexIQ's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move IndexIQ's price. Additionally, you may evaluate how the addition of IndexIQ to your portfolios can decrease your overall portfolio volatility.
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The market value of IndexIQ is measured differently than its book value, which is the value of IndexIQ that is recorded on the company's balance sheet. Investors also form their own opinion of IndexIQ's value that differs from its market value or its book value, called intrinsic value, which is IndexIQ's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because IndexIQ's market value can be influenced by many factors that don't directly affect IndexIQ's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between IndexIQ's value and its price as these two are different measures arrived at by different means. Investors typically determine if IndexIQ is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IndexIQ's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.