Correlation Between IndexIQ and QRAFT AI
Can any of the company-specific risk be diversified away by investing in both IndexIQ and QRAFT AI 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 QRAFT AI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IndexIQ and QRAFT AI Enhanced Large, you can compare the effects of market volatilities on IndexIQ and QRAFT AI 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 QRAFT AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of IndexIQ and QRAFT AI.
Diversification Opportunities for IndexIQ and QRAFT AI
Very good diversification
The 3 months correlation between IndexIQ and QRAFT is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ and QRAFT AI Enhanced Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QRAFT AI Enhanced 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 QRAFT AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QRAFT AI Enhanced has no effect on the direction of IndexIQ i.e., IndexIQ and QRAFT AI go up and down completely randomly.
Pair Corralation between IndexIQ and QRAFT AI
Given the investment horizon of 90 days IndexIQ is expected to generate 23.21 times less return on investment than QRAFT AI. But when comparing it to its historical volatility, IndexIQ is 1.16 times less risky than QRAFT AI. It trades about 0.01 of its potential returns per unit of risk. QRAFT AI Enhanced Large is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,749 in QRAFT AI Enhanced Large on September 1, 2024 and sell it today you would earn a total of 1,863 from holding QRAFT AI Enhanced Large or generate 67.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 24.78% |
| Values | Daily Returns |
IndexIQ vs. QRAFT AI Enhanced Large
Performance |
| Timeline |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| QRAFT AI Enhanced |
IndexIQ and QRAFT AI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IndexIQ and QRAFT AI
The main advantage of trading using opposite IndexIQ and QRAFT AI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IndexIQ position performs unexpectedly, QRAFT AI 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 QRAFT AI will offset losses from the drop in QRAFT AI's long position.| IndexIQ vs. VanEck Natural Resources | IndexIQ vs. IQ Merger Arbitrage | IndexIQ vs. SPDR SP Global | IndexIQ vs. IQ Hedge Multi Strategy |
| QRAFT AI vs. Vanguard Growth Index | QRAFT AI vs. iShares Russell 1000 | QRAFT AI vs. iShares SP 500 | QRAFT AI vs. iShares Core SP |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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