Correlation Between Mast Global and IndexIQ ETF
Can any of the company-specific risk be diversified away by investing in both Mast Global and IndexIQ ETF 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 Mast Global and IndexIQ ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mast Global Battery and IndexIQ ETF Trust, you can compare the effects of market volatilities on Mast Global and IndexIQ ETF 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 Mast Global with a short position of IndexIQ ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and IndexIQ ETF.
Diversification Opportunities for Mast Global and IndexIQ ETF
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mast and IndexIQ is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and IndexIQ ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ ETF Trust and Mast Global 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 Mast Global Battery are associated (or correlated) with IndexIQ ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ ETF Trust has no effect on the direction of Mast Global i.e., Mast Global and IndexIQ ETF go up and down completely randomly.
Pair Corralation between Mast Global and IndexIQ ETF
Allowing for the 90-day total investment horizon Mast Global Battery is expected to under-perform the IndexIQ ETF. In addition to that, Mast Global is 1.62 times more volatile than IndexIQ ETF Trust. It trades about -0.07 of its total potential returns per unit of risk. IndexIQ ETF Trust is currently generating about 0.08 per unit of volatility. If you would invest 2,678 in IndexIQ ETF Trust on August 30, 2024 and sell it today you would earn a total of 34.00 from holding IndexIQ ETF Trust or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Mast Global Battery vs. IndexIQ ETF Trust
Performance |
| Timeline |
| Mast Global Battery |
| IndexIQ ETF Trust |
Mast Global and IndexIQ ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and IndexIQ ETF
The main advantage of trading using opposite Mast Global and IndexIQ ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, IndexIQ ETF 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 ETF will offset losses from the drop in IndexIQ ETF's long position.| Mast Global vs. Freedom Day Dividend | Mast Global vs. Franklin Templeton ETF | Mast Global vs. iShares MSCI China | Mast Global vs. Tidal Trust II |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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