Correlation Between IndexIQ and Columbia ETF
Can any of the company-specific risk be diversified away by investing in both IndexIQ and Columbia 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 IndexIQ and Columbia ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IndexIQ and Columbia ETF Trust, you can compare the effects of market volatilities on IndexIQ and Columbia 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 IndexIQ with a short position of Columbia ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IndexIQ and Columbia ETF.
Diversification Opportunities for IndexIQ and Columbia ETF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IndexIQ and Columbia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ and Columbia ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia ETF Trust 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 Columbia ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia ETF Trust has no effect on the direction of IndexIQ i.e., IndexIQ and Columbia ETF go up and down completely randomly.
Pair Corralation between IndexIQ and Columbia ETF
If you would invest (100.00) in IndexIQ on November 27, 2024 and sell it today you would earn a total of 100.00 from holding IndexIQ or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IndexIQ vs. Columbia ETF Trust
Performance |
| Timeline |
| IndexIQ |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Columbia ETF Trust |
IndexIQ and Columbia ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IndexIQ and Columbia ETF
The main advantage of trading using opposite IndexIQ and Columbia ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IndexIQ position performs unexpectedly, Columbia 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 Columbia ETF will offset losses from the drop in Columbia ETF's long position.| IndexIQ vs. VanEck Natural Resources | IndexIQ vs. IQ Merger Arbitrage | IndexIQ vs. SPDR SP Global | IndexIQ vs. IQ Hedge Multi Strategy |
| Columbia ETF vs. Columbia Research Enhanced | Columbia ETF vs. RiverFront Dynamic Flex Cap | Columbia ETF vs. PIMCO RAFI ESG | Columbia ETF vs. DBX ETF Trust |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |