How the price action is used to our Advantage - Stock Traders Daily

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Published over six months ago View all stories for IndexIQ Active | IndexIQ Active Hype Analysis

We analyze IndexIQ Active's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of IndexIQ Active using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of IndexIQ Active based on its fundamental data. In general, a quantitative approach, as applied to this etf, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with IndexIQ Active etf to make a market-neutral strategy. Peer analysis of IndexIQ Active could also be used in its relative valuation, which is a method of valuing IndexIQ Active by comparing valuation metrics with similar companies.

Check out IndexIQ Active Hype Analysis, IndexIQ Active Correlation and IndexIQ Active Performance. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

The market value of IndexIQ Active ETF 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 Active's value that differs from its market value or its book value, called intrinsic value, which is IndexIQ Active'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 Active's market value can be influenced by many factors that don't directly affect IndexIQ Active'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 Active's value and its price as these two are different measures arrived at by different means. Investors typically determine if IndexIQ Active is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IndexIQ Active'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.