Correlation Between IndexIQ and VanEck Inflation
Can any of the company-specific risk be diversified away by investing in both IndexIQ and VanEck Inflation 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 VanEck Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IndexIQ and VanEck Inflation Allocation, you can compare the effects of market volatilities on IndexIQ and VanEck Inflation 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 VanEck Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of IndexIQ and VanEck Inflation.
Diversification Opportunities for IndexIQ and VanEck Inflation
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IndexIQ and VanEck is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ and VanEck Inflation Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Inflation All 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 VanEck Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Inflation All has no effect on the direction of IndexIQ i.e., IndexIQ and VanEck Inflation go up and down completely randomly.
Pair Corralation between IndexIQ and VanEck Inflation
If you would invest 2,576 in IndexIQ on September 12, 2024 and sell it today you would earn a total of 0.00 from holding IndexIQ or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
IndexIQ vs. VanEck Inflation Allocation
Performance |
| Timeline |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| VanEck Inflation All |
IndexIQ and VanEck Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IndexIQ and VanEck Inflation
The main advantage of trading using opposite IndexIQ and VanEck Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IndexIQ position performs unexpectedly, VanEck Inflation 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 VanEck Inflation will offset losses from the drop in VanEck Inflation's long position.| IndexIQ vs. IQ Hedge Multi Strategy | IndexIQ vs. IQ Merger Arbitrage | IndexIQ vs. WisdomTree Emerging Currency | IndexIQ vs. ProShares Large Cap |
| VanEck Inflation vs. iShares Core Growth | VanEck Inflation vs. Alpha Architect Gdsdn | VanEck Inflation vs. STF Tactical Growth | VanEck Inflation vs. ClearShares OCIO ETF |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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