Correlation Between IndexIQ and ProShares Large
Can any of the company-specific risk be diversified away by investing in both IndexIQ and ProShares Large 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 ProShares Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IndexIQ and ProShares Large Cap, you can compare the effects of market volatilities on IndexIQ and ProShares Large 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 ProShares Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of IndexIQ and ProShares Large.
Diversification Opportunities for IndexIQ and ProShares Large
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IndexIQ and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ and ProShares Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Large Cap 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 ProShares Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Large Cap has no effect on the direction of IndexIQ i.e., IndexIQ and ProShares Large go up and down completely randomly.
Pair Corralation between IndexIQ and ProShares Large
If you would invest 4,642 in ProShares Large Cap on November 9, 2024 and sell it today you would earn a total of 2,205 from holding ProShares Large Cap or generate 47.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IndexIQ vs. ProShares Large Cap
Performance |
| Timeline |
| IndexIQ |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| ProShares Large Cap |
IndexIQ and ProShares Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IndexIQ and ProShares Large
The main advantage of trading using opposite IndexIQ and ProShares Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IndexIQ position performs unexpectedly, ProShares Large 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 ProShares Large will offset losses from the drop in ProShares Large's long position.| IndexIQ vs. IQ Hedge Multi Strategy | IndexIQ vs. IQ Merger Arbitrage | IndexIQ vs. WisdomTree Emerging Currency | IndexIQ vs. ProShares Large Cap |
| ProShares Large vs. ProShares Hedge Replication | ProShares Large vs. ProShares Ultra MSCI | ProShares Large vs. ProShares Ultra Consumer | ProShares Large vs. ProShares Ultra Consumer |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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