Correlation Between SPDR Bloomberg and IndexIQ
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg 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 SPDR Bloomberg and IndexIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg High and IndexIQ, you can compare the effects of market volatilities on SPDR Bloomberg 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 SPDR Bloomberg with a short position of IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and IndexIQ.
Diversification Opportunities for SPDR Bloomberg and IndexIQ
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and IndexIQ is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg High and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ and SPDR Bloomberg 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 SPDR Bloomberg High 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 SPDR Bloomberg i.e., SPDR Bloomberg and IndexIQ go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and IndexIQ
If you would invest 9,650 in SPDR Bloomberg High on September 3, 2024 and sell it today you would earn a total of 86.00 from holding SPDR Bloomberg High or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR Bloomberg High vs. IndexIQ
Performance |
| Timeline |
| SPDR Bloomberg High |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Bloomberg and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and IndexIQ
The main advantage of trading using opposite SPDR Bloomberg and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg 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.| SPDR Bloomberg vs. iShares iBoxx High | SPDR Bloomberg vs. iShares iBoxx Investment | SPDR Bloomberg vs. iShares JP Morgan | SPDR Bloomberg vs. iShares TIPS Bond |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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