Correlation Between New York and IndexIQ
Can any of the company-specific risk be diversified away by investing in both New York and IndexIQ 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 New York and IndexIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Life and IndexIQ, you can compare the effects of market volatilities on New York and IndexIQ 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 New York with a short position of IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and IndexIQ.
Diversification Opportunities for New York and IndexIQ
Pay attention - limited upside
The 3 months correlation between New and IndexIQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New York Life and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ and New York 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 New York Life are associated (or correlated) with IndexIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ has no effect on the direction of New York i.e., New York and IndexIQ go up and down completely randomly.
Pair Corralation between New York and IndexIQ
If you would invest (100.00) in IndexIQ on January 11, 2025 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 |
New York Life vs. IndexIQ
Performance |
| Timeline |
| New York Life |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| IndexIQ |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
New York and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and IndexIQ
The main advantage of trading using opposite New York and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, IndexIQ 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 will offset losses from the drop in IndexIQ's long position.| New York vs. FT Vest Equity | New York vs. Zillow Group Class | New York vs. Northern Lights | New York vs. VanEck Vectors Moodys |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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