Correlation Between Formidable Fortress and IndexIQ
Can any of the company-specific risk be diversified away by investing in both Formidable Fortress 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 Formidable Fortress and IndexIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Formidable Fortress ETF and IndexIQ, you can compare the effects of market volatilities on Formidable Fortress 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 Formidable Fortress with a short position of IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Formidable Fortress and IndexIQ.
Diversification Opportunities for Formidable Fortress and IndexIQ
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Formidable and IndexIQ is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Formidable Fortress ETF and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ and Formidable Fortress 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 Formidable Fortress ETF 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 Formidable Fortress i.e., Formidable Fortress and IndexIQ go up and down completely randomly.
Pair Corralation between Formidable Fortress and IndexIQ
Given the investment horizon of 90 days Formidable Fortress ETF is expected to generate 2.21 times more return on investment than IndexIQ. However, Formidable Fortress is 2.21 times more volatile than IndexIQ. It trades about 0.09 of its potential returns per unit of risk. IndexIQ is currently generating about 0.07 per unit of risk. If you would invest 2,433 in Formidable Fortress ETF on August 31, 2024 and sell it today you would earn a total of 653.00 from holding Formidable Fortress ETF or generate 26.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Formidable Fortress ETF vs. IndexIQ
Performance |
| Timeline |
| Formidable Fortress ETF |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Formidable Fortress and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Formidable Fortress and IndexIQ
The main advantage of trading using opposite Formidable Fortress and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Formidable Fortress 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.| Formidable Fortress vs. iShares Small Cap | Formidable Fortress vs. Invesco ESG NASDAQ | Formidable Fortress vs. Invesco ESG NASDAQ | Formidable Fortress vs. BlackRock Carbon Transition |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |