Correlation Between IndexIQ Active and ASPY
Can any of the company-specific risk be diversified away by investing in both IndexIQ Active and ASPY 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 Active and ASPY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IndexIQ Active ETF and ASPY, you can compare the effects of market volatilities on IndexIQ Active and ASPY 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 Active with a short position of ASPY. Check out your portfolio center. Please also check ongoing floating volatility patterns of IndexIQ Active and ASPY.
Diversification Opportunities for IndexIQ Active and ASPY
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IndexIQ and ASPY is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ Active ETF and ASPY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASPY and IndexIQ Active 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 Active ETF are associated (or correlated) with ASPY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASPY has no effect on the direction of IndexIQ Active i.e., IndexIQ Active and ASPY go up and down completely randomly.
Pair Corralation between IndexIQ Active and ASPY
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 |
IndexIQ Active ETF vs. ASPY
Performance |
| Timeline |
| IndexIQ Active ETF |
| ASPY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IndexIQ Active and ASPY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IndexIQ Active and ASPY
The main advantage of trading using opposite IndexIQ Active and ASPY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IndexIQ Active position performs unexpectedly, ASPY 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 ASPY will offset losses from the drop in ASPY's long position.| IndexIQ Active vs. SPDR Bloomberg Barclays | IndexIQ Active vs. FlexShares STOXX Global | IndexIQ Active vs. BNY Mellon ETF | IndexIQ Active vs. American Century Sustainable |
| ASPY vs. First Trust Managed | ASPY vs. IQ Hedge Multi Strategy | ASPY vs. First Trust BuyWrite | ASPY vs. SPDR SSgA Global |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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