Correlation Between ASPY and IndexIQ Active
Can any of the company-specific risk be diversified away by investing in both ASPY and IndexIQ Active 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 ASPY and IndexIQ Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASPY and IndexIQ Active ETF, you can compare the effects of market volatilities on ASPY and IndexIQ Active 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 ASPY with a short position of IndexIQ Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASPY and IndexIQ Active.
Diversification Opportunities for ASPY and IndexIQ Active
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASPY and IndexIQ is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding ASPY and IndexIQ Active ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ Active ETF and ASPY 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 ASPY are associated (or correlated) with IndexIQ Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ Active ETF has no effect on the direction of ASPY i.e., ASPY and IndexIQ Active go up and down completely randomly.
Pair Corralation between ASPY and IndexIQ Active
If you would invest 2,027 in IndexIQ Active ETF on September 1, 2024 and sell it today you would earn a total of 101.00 from holding IndexIQ Active ETF or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
ASPY vs. IndexIQ Active ETF
Performance |
| Timeline |
| ASPY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IndexIQ Active ETF |
ASPY and IndexIQ Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASPY and IndexIQ Active
The main advantage of trading using opposite ASPY and IndexIQ Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASPY position performs unexpectedly, IndexIQ Active 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 Active will offset losses from the drop in IndexIQ Active's long position.| ASPY vs. First Trust Managed | ASPY vs. IQ Hedge Multi Strategy | ASPY vs. First Trust BuyWrite | ASPY vs. SPDR SSgA Global |
| IndexIQ Active vs. SPDR Bloomberg Barclays | IndexIQ Active vs. FlexShares STOXX Global | IndexIQ Active vs. BNY Mellon ETF | IndexIQ Active vs. American Century Sustainable |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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