Correlation Between IndexIQ and GLCN
Can any of the company-specific risk be diversified away by investing in both IndexIQ and GLCN 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 GLCN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IndexIQ and GLCN, you can compare the effects of market volatilities on IndexIQ and GLCN 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 GLCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of IndexIQ and GLCN.
Diversification Opportunities for IndexIQ and GLCN
Poor diversification
The 3 months correlation between IndexIQ and GLCN is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ and GLCN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLCN 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 GLCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLCN has no effect on the direction of IndexIQ i.e., IndexIQ and GLCN go up and down completely randomly.
Pair Corralation between IndexIQ and GLCN
If you would invest 2,307 in GLCN on August 29, 2024 and sell it today you would earn a total of 0.00 from holding GLCN or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IndexIQ vs. GLCN
Performance |
| Timeline |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GLCN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IndexIQ and GLCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IndexIQ and GLCN
The main advantage of trading using opposite IndexIQ and GLCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IndexIQ position performs unexpectedly, GLCN 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 GLCN will offset losses from the drop in GLCN's long position.| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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