Correlation Between Akros Monthly and IndexIQ ETF
Can any of the company-specific risk be diversified away by investing in both Akros Monthly 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 Akros Monthly and IndexIQ ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akros Monthly Payout and IndexIQ ETF Trust, you can compare the effects of market volatilities on Akros Monthly 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 Akros Monthly with a short position of IndexIQ ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akros Monthly and IndexIQ ETF.
Diversification Opportunities for Akros Monthly and IndexIQ ETF
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Akros and IndexIQ is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Akros Monthly Payout 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 Akros Monthly 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 Akros Monthly Payout 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 Akros Monthly i.e., Akros Monthly and IndexIQ ETF go up and down completely randomly.
Pair Corralation between Akros Monthly and IndexIQ ETF
Given the investment horizon of 90 days Akros Monthly Payout is expected to generate 0.97 times more return on investment than IndexIQ ETF. However, Akros Monthly Payout is 1.03 times less risky than IndexIQ ETF. It trades about 0.12 of its potential returns per unit of risk. IndexIQ ETF Trust is currently generating about 0.1 per unit of risk. If you would invest 2,570 in Akros Monthly Payout on November 9, 2024 and sell it today you would earn a total of 58.00 from holding Akros Monthly Payout or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akros Monthly Payout vs. IndexIQ ETF Trust
Performance |
| Timeline |
| Akros Monthly Payout |
| IndexIQ ETF Trust |
Akros Monthly and IndexIQ ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akros Monthly and IndexIQ ETF
The main advantage of trading using opposite Akros Monthly and IndexIQ ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akros Monthly 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.| Akros Monthly vs. Bionik Laboratories Corp | Akros Monthly vs. Mobivity Holdings | Akros Monthly vs. Rafina Innovations | Akros Monthly vs. Magellan Gold Corp |
| IndexIQ ETF vs. IndexIQ ETF Trust | IndexIQ ETF vs. Invesco ESG NASDAQ | IndexIQ ETF vs. Invesco ESG NASDAQ | IndexIQ ETF vs. Nushares ETF Trust |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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