Correlation Between Anfield Equity and IQ Hedge

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

By analyzing existing cross correlation between Anfield Equity Sector and IQ Hedge Multi Strategy, you can compare the effects of market volatilities on Anfield Equity and IQ Hedge 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 Anfield Equity with a short position of IQ Hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anfield Equity and IQ Hedge.

Diversification Opportunities for Anfield Equity and IQ Hedge

0.89

Correlation Coefficient

Anfield Equity  IQ Hedge

Very poor diversification

The 3 months correlation between Anfield and QAI is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Anfield Equity Sector and IQ Hedge Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ Hedge Multi and Anfield Equity 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 Anfield Equity Sector are associated (or correlated) with IQ Hedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ Hedge Multi has no effect on the direction of Anfield Equity i.e., Anfield Equity and IQ Hedge go up and down completely randomly.

Pair Corralation between Anfield Equity and IQ Hedge

Given the investment horizon of 90 days Anfield Equity Sector is expected to generate 3.29 times more return on investment than IQ Hedge. However, Anfield Equity is 3.29 times more volatile than IQ Hedge Multi Strategy. It trades about 0.22 of its potential returns per unit of risk. IQ Hedge Multi Strategy is currently generating about 0.31 per unit of risk. If you would invest  1,903  in Anfield Equity Sector on July 11, 2025 and sell it today you would earn a total of  182.00  from holding Anfield Equity Sector or generate 9.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Anfield Equity Sector  vs.  IQ Hedge Multi Strategy

Anfield Equity Sector

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Anfield Equity Sector are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Anfield Equity may actually be approaching a critical reversion point that can send shares even higher in November 2025.

IQ Hedge Multi

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IQ Hedge Multi Strategy are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, IQ Hedge is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Anfield Equity and IQ Hedge

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

The idea behind Anfield Equity Sector and IQ Hedge Multi Strategy 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .