Correlation Between IndexIQ and CIZ

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

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

Diversification Opportunities for IndexIQ and CIZ

0.0

Correlation Coefficient

IndexIQ  CIZ

Pay attention - limited upside

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

Pair Corralation between IndexIQ and CIZ

If you would invest (100.00) in CIZ on April 29, 2025 and sell it today you would earn a total of  100.00  from holding CIZ or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

IndexIQ  vs.  CIZ

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 quite persistent primary indicators, IndexIQ is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

CIZ

Risk-Adjusted Performance

Very Weak

Over the last 90 days CIZ has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, CIZ is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with IndexIQ and CIZ

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

The idea behind IndexIQ and CIZ 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.