Correlation Between IndexIQ and FlexShares International
Can any of the company-specific risk be diversified away by investing in both IndexIQ and FlexShares International 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 IndexIQ and FlexShares International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IndexIQ and FlexShares International Quality, you can compare the effects of market volatilities on IndexIQ and FlexShares International 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 IndexIQ with a short position of FlexShares International. Check out your portfolio center. Please also check ongoing floating volatility patterns of IndexIQ and FlexShares International.
Diversification Opportunities for IndexIQ and FlexShares International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IndexIQ and FlexShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ and FlexShares International Quali in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShares International and IndexIQ 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 IndexIQ are associated (or correlated) with FlexShares International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShares International has no effect on the direction of IndexIQ i.e., IndexIQ and FlexShares International go up and down completely randomly.
Pair Corralation between IndexIQ and FlexShares International
If you would invest 2,406 in FlexShares International Quality on November 28, 2024 and sell it today you would earn a total of 92.00 from holding FlexShares International Quality or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IndexIQ vs. FlexShares International Quali
Performance |
| Timeline |
| IndexIQ |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| FlexShares International |
IndexIQ and FlexShares International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IndexIQ and FlexShares International
The main advantage of trading using opposite IndexIQ and FlexShares International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IndexIQ position performs unexpectedly, FlexShares International 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 FlexShares International will offset losses from the drop in FlexShares International's long position.| IndexIQ vs. Invesco Active Real | IndexIQ vs. First Trust SP | IndexIQ vs. Invesco KBW Premium | IndexIQ vs. VanEck Mortgage REIT |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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