Correlation Between IQ Hedge and Tidal ETF
Can any of the company-specific risk be diversified away by investing in both IQ Hedge and Tidal 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 IQ Hedge and Tidal ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IQ Hedge Multi Strategy and Tidal ETF Trust, you can compare the effects of market volatilities on IQ Hedge and Tidal 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 IQ Hedge with a short position of Tidal ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQ Hedge and Tidal ETF.
Diversification Opportunities for IQ Hedge and Tidal ETF
Almost no diversification
The 3 months correlation between QAI and Tidal is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding IQ Hedge Multi Strategy and Tidal ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal ETF Trust and IQ Hedge 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 IQ Hedge Multi Strategy are associated (or correlated) with Tidal ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal ETF Trust has no effect on the direction of IQ Hedge i.e., IQ Hedge and Tidal ETF go up and down completely randomly.
Pair Corralation between IQ Hedge and Tidal ETF
Considering the 90-day investment horizon IQ Hedge Multi Strategy is expected to generate 0.64 times more return on investment than Tidal ETF. However, IQ Hedge Multi Strategy is 1.56 times less risky than Tidal ETF. It trades about 0.11 of its potential returns per unit of risk. Tidal ETF Trust is currently generating about 0.05 per unit of risk. If you would invest 2,776 in IQ Hedge Multi Strategy on August 31, 2024 and sell it today you would earn a total of 486.00 from holding IQ Hedge Multi Strategy or generate 17.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
IQ Hedge Multi Strategy vs. Tidal ETF Trust
Performance |
| Timeline |
| IQ Hedge Multi |
| Tidal ETF Trust |
IQ Hedge and Tidal ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IQ Hedge and Tidal ETF
The main advantage of trading using opposite IQ Hedge and Tidal ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQ Hedge position performs unexpectedly, Tidal 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 Tidal ETF will offset losses from the drop in Tidal ETF's long position.| IQ Hedge vs. Tidal ETF Trust | IQ Hedge vs. Eaton Vance Enhanced | IQ Hedge vs. Grayscale Ethereum Mini | IQ Hedge vs. Intel |
| Tidal ETF vs. Eaton Vance Enhanced | Tidal ETF vs. Grayscale Ethereum Mini | Tidal ETF vs. Intel | Tidal ETF vs. The Travelers Companies |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |