Correlation Between IShares International and IndexIQ
Can any of the company-specific risk be diversified away by investing in both IShares International 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 IShares International and IndexIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares International Select and IndexIQ, you can compare the effects of market volatilities on IShares International 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 IShares International with a short position of IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares International and IndexIQ.
Diversification Opportunities for IShares International and IndexIQ
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and IndexIQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares International Select and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ and IShares International 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 iShares International Select 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 IShares International i.e., IShares International and IndexIQ go up and down completely randomly.
Pair Corralation between IShares International and IndexIQ
If you would invest 2,858 in iShares International Select on November 2, 2024 and sell it today you would lose (1.00) from holding iShares International Select or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.67% |
| Values | Daily Returns |
iShares International Select vs. IndexIQ
Performance |
| Timeline |
| iShares International |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares International and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares International and IndexIQ
The main advantage of trading using opposite IShares International and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares International 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.| IShares International vs. iShares Core High | IShares International vs. SPDR SP International | IShares International vs. iShares Select Dividend | IShares International vs. iShares Emerging Markets |
| IndexIQ vs. IQ 50 Percent | IndexIQ vs. FlexShares International Quality | IndexIQ vs. Invesco SP International | IndexIQ vs. American Century Quality |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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