Correlation Between VanEck Intermediate and IQ MacKay
Can any of the company-specific risk be diversified away by investing in both VanEck Intermediate and IQ MacKay 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 VanEck Intermediate and IQ MacKay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Intermediate Muni and IQ MacKay Municipal, you can compare the effects of market volatilities on VanEck Intermediate and IQ MacKay 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 VanEck Intermediate with a short position of IQ MacKay. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Intermediate and IQ MacKay.
Diversification Opportunities for VanEck Intermediate and IQ MacKay
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VanEck and MMIT is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Intermediate Muni and IQ MacKay Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ MacKay Municipal and VanEck Intermediate 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 VanEck Intermediate Muni are associated (or correlated) with IQ MacKay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ MacKay Municipal has no effect on the direction of VanEck Intermediate i.e., VanEck Intermediate and IQ MacKay go up and down completely randomly.
Pair Corralation between VanEck Intermediate and IQ MacKay
Considering the 90-day investment horizon VanEck Intermediate Muni is expected to under-perform the IQ MacKay. In addition to that, VanEck Intermediate is 1.21 times more volatile than IQ MacKay Municipal. It trades about -0.01 of its total potential returns per unit of risk. IQ MacKay Municipal is currently generating about 0.03 per unit of volatility. If you would invest 2,402 in IQ MacKay Municipal on October 22, 2024 and sell it today you would earn a total of 3.00 from holding IQ MacKay Municipal or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Intermediate Muni vs. IQ MacKay Municipal
Performance |
| Timeline |
| VanEck Intermediate Muni |
| IQ MacKay Municipal |
VanEck Intermediate and IQ MacKay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Intermediate and IQ MacKay
The main advantage of trading using opposite VanEck Intermediate and IQ MacKay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Intermediate position performs unexpectedly, IQ MacKay 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 IQ MacKay will offset losses from the drop in IQ MacKay's long position.| VanEck Intermediate vs. VanEck Long Muni | VanEck Intermediate vs. VanEck Short Muni | VanEck Intermediate vs. SPDR Nuveen Bloomberg | VanEck Intermediate vs. Invesco National AMT Free |
| IQ MacKay vs. IQ MacKay Municipal | IQ MacKay vs. Hartford Municipal Opportunities | IQ MacKay vs. Columbia Multi Sector Municipal | IQ MacKay vs. American Century Diversified |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |