Correlation Between Mast Global and IndexIQ
Can any of the company-specific risk be diversified away by investing in both Mast Global 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 Mast Global and IndexIQ 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, you can compare the effects of market volatilities on Mast Global 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 Mast Global with a short position of IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and IndexIQ.
Diversification Opportunities for Mast Global and IndexIQ
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mast and IndexIQ is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ 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. 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 Mast Global i.e., Mast Global and IndexIQ go up and down completely randomly.
Pair Corralation between Mast Global and IndexIQ
Allowing for the 90-day total investment horizon Mast Global is expected to generate 3.36 times less return on investment than IndexIQ. In addition to that, Mast Global is 1.31 times more volatile than IndexIQ. It trades about 0.01 of its total potential returns per unit of risk. IndexIQ is currently generating about 0.02 per unit of volatility. If you would invest 3,297 in IndexIQ on September 1, 2024 and sell it today you would earn a total of 99.00 from holding IndexIQ or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 64.56% |
| Values | Daily Returns |
Mast Global Battery vs. IndexIQ
Performance |
| Timeline |
| Mast Global Battery |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mast Global and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and IndexIQ
The main advantage of trading using opposite Mast Global and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global 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.| Mast Global vs. Freedom Day Dividend | Mast Global vs. iShares MSCI China | Mast Global vs. iShares Dividend and | Mast Global vs. SmartETFs Dividend Builder |
| IndexIQ vs. VanEck Natural Resources | IndexIQ vs. IQ Merger Arbitrage | IndexIQ vs. SPDR SP Global | IndexIQ vs. IQ Hedge Multi Strategy |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |