Correlation Between IndexIQ and Anfield Universal

Can any of the company-specific risk be diversified away by investing in both IndexIQ and Anfield Universal 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 Anfield Universal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IndexIQ and Anfield Universal Fixed, you can compare the effects of market volatilities on IndexIQ and Anfield Universal 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 Anfield Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of IndexIQ and Anfield Universal.

Diversification Opportunities for IndexIQ and Anfield Universal

0.58

Correlation Coefficient

IndexIQ  Anfield Universal

Very weak diversification

The 3 months correlation between IndexIQ and Anfield is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ and Anfield Universal Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Universal Fixed 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 Anfield Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Universal Fixed has no effect on the direction of IndexIQ i.e., IndexIQ and Anfield Universal go up and down completely randomly.

Pair Corralation between IndexIQ and Anfield Universal

If you would invest  911.00  in Anfield Universal Fixed on September 13, 2024 and sell it today you would earn a total of  9.00  from holding Anfield Universal Fixed or generate 0.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

IndexIQ  vs.  Anfield Universal Fixed

IndexIQ

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IndexIQ has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, IndexIQ is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Anfield Universal Fixed

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Anfield Universal Fixed are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Anfield Universal is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with IndexIQ and Anfield Universal

The main advantage of trading using opposite IndexIQ and Anfield Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IndexIQ position performs unexpectedly, Anfield Universal 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 Anfield Universal will offset losses from the drop in Anfield Universal's long position.

The idea behind IndexIQ and Anfield Universal Fixed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.