Indexiq Etf Volatility
We have found zero technical indicators for IndexIQ, which you can use to evaluate the volatility of the entity. Key indicators related to IndexIQ's volatility include:
300 Days Market Risk | Chance Of Distress | 300 Days Economic Sensitivity |
IndexIQ Etf volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of IndexIQ daily returns, and it is calculated using variance and standard deviation. We also use IndexIQ's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of IndexIQ volatility.
IndexIQ |
IndexIQ Etf Volatility Analysis
Volatility refers to the frequency at which IndexIQ etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with IndexIQ's price changes. Investors will then calculate the volatility of IndexIQ's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of IndexIQ's volatility:
Historical Volatility
This type of etf volatility measures IndexIQ's fluctuations based on previous trends. It's commonly used to predict IndexIQ's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for IndexIQ's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on IndexIQ's to be redeemed at a future date.Transformation |
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IndexIQ Projected Return Density Against Market
Considering the 90-day investment horizon IndexIQ has a beta that is very close to zero indicating the returns on DOW JONES INDUSTRIAL and IndexIQ do not appear to be highly-sensitive.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to IndexIQ or IndexIQ sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that IndexIQ's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a IndexIQ etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
It does not look like IndexIQ's alpha can have any bearing on the current valuation. Predicted Return Density |
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What Drives an IndexIQ Price Volatility?
Several factors can influence a etf's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.IndexIQ Etf Risk Measures
Considering the 90-day investment horizon the coefficient of variation of IndexIQ is 0.0. The daily returns are distributed with a variance of 0.0 and standard deviation of 0.0. The mean deviation of IndexIQ is currently at 0.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.00 | |
β | Beta against Dow Jones | 0.00 | |
σ | Overall volatility | 0.00 | |
Ir | Information ratio | 0.00 |
IndexIQ Etf Return Volatility
IndexIQ historical daily return volatility represents how much of IndexIQ etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 0.0% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
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About IndexIQ Volatility
Volatility is a rate at which the price of IndexIQ or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of IndexIQ may increase or decrease. In other words, similar to IndexIQ's beta indicator, it measures the risk of IndexIQ and helps estimate the fluctuations that may happen in a short period of time. So if prices of IndexIQ fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.The fund is a fund of funds which means it invests, under normal circumstances, at least 80 percent of its net assets, plus the amount of any borrowings for investment purposes, in the investments included in its underlying index, which includes underlying funds. IQ Hedge is traded on NYSEARCA Exchange in the United States.
IndexIQ's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on IndexIQ Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much IndexIQ's price varies over time.
3 ways to utilize IndexIQ's volatility to invest better
Higher IndexIQ's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of IndexIQ etf is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. IndexIQ etf volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of IndexIQ investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in IndexIQ's etf can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of IndexIQ's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
IndexIQ Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.78 and is 9.223372036854776E16 times more volatile than IndexIQ. Compared to the overall equity markets, volatility of historical daily returns of IndexIQ is lower than 0 percent of all global equities and portfolios over the last 90 days. You can use IndexIQ to protect your portfolios against small market fluctuations. The etf experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of IndexIQ to be traded at $0.0 in 90 days.Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
IndexIQ Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against IndexIQ as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. IndexIQ's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, IndexIQ's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to IndexIQ.
When determining whether IndexIQ is a strong investment it is important to analyze IndexIQ's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact IndexIQ's future performance. For an informed investment choice regarding IndexIQ Etf, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
The market value of IndexIQ is measured differently than its book value, which is the value of IndexIQ that is recorded on the company's balance sheet. Investors also form their own opinion of IndexIQ's value that differs from its market value or its book value, called intrinsic value, which is IndexIQ's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because IndexIQ's market value can be influenced by many factors that don't directly affect IndexIQ's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between IndexIQ's value and its price as these two are different measures arrived at by different means. Investors typically determine if IndexIQ is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IndexIQ's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.