Correlation Between IQ Healthy and Kurv Technology

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

By analyzing existing cross correlation between IQ Healthy Hearts and Kurv Technology Titans, you can compare the effects of market volatilities on IQ Healthy and Kurv Technology 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 Healthy with a short position of Kurv Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQ Healthy and Kurv Technology.

Diversification Opportunities for IQ Healthy and Kurv Technology

-0.7

Correlation Coefficient

IQ Healthy  Kurv Technology

Excellent diversification

The 3 months correlation between HART and Kurv is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding IQ Healthy Hearts and Kurv Technology Titans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Technology Titans and IQ Healthy 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 Healthy Hearts are associated (or correlated) with Kurv Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Technology Titans has no effect on the direction of IQ Healthy i.e., IQ Healthy and Kurv Technology go up and down completely randomly.

Pair Corralation between IQ Healthy and Kurv Technology

Given the investment horizon of 90 days IQ Healthy Hearts is expected to under-perform the Kurv Technology. But the etf apears to be less risky and, when comparing its historical volatility, IQ Healthy Hearts is 1.99 times less risky than Kurv Technology. The etf trades about -0.1 of its potential returns per unit of risk. The Kurv Technology Titans is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  2,423  in Kurv Technology Titans on September 13, 2024 and sell it today you would earn a total of  369.00  from holding Kurv Technology Titans or generate 15.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

IQ Healthy Hearts  vs.  Kurv Technology Titans

IQ Healthy Hearts

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IQ Healthy Hearts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, IQ Healthy is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Kurv Technology Titans

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kurv Technology Titans are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Kurv Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IQ Healthy and Kurv Technology

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

The idea behind IQ Healthy Hearts and Kurv Technology Titans 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.