Correlation Between IndexIQ and IQ Hedge
Can any of the company-specific risk be diversified away by investing in both IndexIQ and IQ Hedge 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 IQ Hedge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IndexIQ and IQ Hedge Multi Strategy, you can compare the effects of market volatilities on IndexIQ and IQ Hedge 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 IQ Hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of IndexIQ and IQ Hedge.
Diversification Opportunities for IndexIQ and IQ Hedge
Pay attention - limited upside
The 3 months correlation between IndexIQ and QAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ and IQ Hedge Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ Hedge Multi 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 IQ Hedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ Hedge Multi has no effect on the direction of IndexIQ i.e., IndexIQ and IQ Hedge go up and down completely randomly.
Pair Corralation between IndexIQ and IQ Hedge
If you would invest (100.00) in IndexIQ on December 1, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IndexIQ vs. IQ Hedge Multi Strategy
Performance |
| Timeline |
| IndexIQ |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| IQ Hedge Multi |
IndexIQ and IQ Hedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IndexIQ and IQ Hedge
The main advantage of trading using opposite IndexIQ and IQ Hedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IndexIQ position performs unexpectedly, IQ Hedge 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 IQ Hedge will offset losses from the drop in IQ Hedge's long position.| IndexIQ vs. IQ Hedge Multi Strategy | IndexIQ vs. IQ Merger Arbitrage | IndexIQ vs. WisdomTree Emerging Currency | IndexIQ vs. ProShares Large Cap |
| IQ Hedge vs. IQ Merger Arbitrage | IQ Hedge vs. ProShares Hedge Replication | IQ Hedge vs. First Trust LongShort |
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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