Correlation Between IndexIQ and Even Herd

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

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

Diversification Opportunities for IndexIQ and Even Herd

0.0

Correlation Coefficient

IndexIQ  Even Herd

Pay attention - limited upside

The 3 months correlation between IndexIQ and Even is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IndexIQ and Even Herd Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Even Herd Long 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 Even Herd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Even Herd Long has no effect on the direction of IndexIQ i.e., IndexIQ and Even Herd go up and down completely randomly.

Pair Corralation between IndexIQ and Even Herd

If you would invest  2,258  in Even Herd Long on November 19, 2024 and sell it today you would earn a total of  79.00  from holding Even Herd Long or generate 3.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

IndexIQ  vs.  Even Herd Long

IndexIQ

Risk-Adjusted Performance

Very Weak

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

Even Herd Long

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Even Herd Long are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Even Herd is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with IndexIQ and Even Herd

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

The idea behind IndexIQ and Even Herd Long 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.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.