Correlation Between US Global and IndexIQ ETF
Can any of the company-specific risk be diversified away by investing in both US Global and IndexIQ 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 US Global and IndexIQ ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Jets and IndexIQ ETF Trust, you can compare the effects of market volatilities on US Global and IndexIQ 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 US Global with a short position of IndexIQ ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and IndexIQ ETF.
Diversification Opportunities for US Global and IndexIQ ETF
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JETS and IndexIQ is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding US Global Jets and IndexIQ ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ ETF Trust and US Global 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 US Global Jets are associated (or correlated) with IndexIQ ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ ETF Trust has no effect on the direction of US Global i.e., US Global and IndexIQ ETF go up and down completely randomly.
Pair Corralation between US Global and IndexIQ ETF
Given the investment horizon of 90 days US Global Jets is expected to generate 2.05 times more return on investment than IndexIQ ETF. However, US Global is 2.05 times more volatile than IndexIQ ETF Trust. It trades about 0.18 of its potential returns per unit of risk. IndexIQ ETF Trust is currently generating about 0.11 per unit of risk. If you would invest 2,472 in US Global Jets on September 13, 2024 and sell it today you would earn a total of 121.00 from holding US Global Jets or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Jets vs. IndexIQ ETF Trust
Performance |
| Timeline |
| US Global Jets |
| IndexIQ ETF Trust |
US Global and IndexIQ ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and IndexIQ ETF
The main advantage of trading using opposite US Global and IndexIQ ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, IndexIQ 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 IndexIQ ETF will offset losses from the drop in IndexIQ ETF's long position.| US Global vs. Invesco DWA Utilities | US Global vs. Invesco Dynamic Food | US Global vs. SCOR PK | US Global vs. Morningstar Unconstrained Allocation |
| IndexIQ ETF vs. IndexIQ ETF Trust | IndexIQ ETF vs. ProShares SP Kensho | IndexIQ ETF vs. Invesco Alerian Galaxy |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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