Correlation Between IndexIQ and VictoryShares

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

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

Diversification Opportunities for IndexIQ and VictoryShares

0.0

Correlation Coefficient

IndexIQ  VictoryShares

Pay attention - limited upside

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

Pair Corralation between IndexIQ and VictoryShares

If you would invest  20.00  in VictoryShares on April 23, 2025 and sell it today you would earn a total of  24,480  from holding VictoryShares or generate 122400.0% return on investment over 90 days.

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

IndexIQ  vs.  VictoryShares

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. Despite nearly stable basic indicators, IndexIQ is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

VictoryShares

Risk-Adjusted Performance

Very Strong

Over the last 90 days VictoryShares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unfluctuating basic indicators, VictoryShares reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IndexIQ and VictoryShares

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

The idea behind IndexIQ and VictoryShares 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.