Correlation Between Tidal Trust and IQ Hedge
Can any of the company-specific risk be diversified away by investing in both Tidal Trust 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 Tidal Trust and IQ Hedge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal Trust I and IQ Hedge Multi Strategy, you can compare the effects of market volatilities on Tidal Trust 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 Tidal Trust with a short position of IQ Hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal Trust and IQ Hedge.
Diversification Opportunities for Tidal Trust and IQ Hedge
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Tidal and QAI is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust I 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 Tidal Trust 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 Tidal Trust I 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 Tidal Trust i.e., Tidal Trust and IQ Hedge go up and down completely randomly.
Pair Corralation between Tidal Trust and IQ Hedge
Given the investment horizon of 90 days Tidal Trust I is expected to generate 1.72 times more return on investment than IQ Hedge. However, Tidal Trust is 1.72 times more volatile than IQ Hedge Multi Strategy. It trades about 0.23 of its potential returns per unit of risk. IQ Hedge Multi Strategy is currently generating about 0.26 per unit of risk. If you would invest 2,157 in Tidal Trust I on May 29, 2025 and sell it today you would earn a total of 129.00 from holding Tidal Trust I or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tidal Trust I vs. IQ Hedge Multi Strategy
Performance |
| Timeline |
| Tidal Trust I |
| IQ Hedge Multi |
Tidal Trust and IQ Hedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal Trust and IQ Hedge
The main advantage of trading using opposite Tidal Trust and IQ Hedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust 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.| Tidal Trust vs. Simplify Managed Futures | Tidal Trust vs. iMGP DBi Managed | Tidal Trust vs. KFA Mount Lucas |
| IQ Hedge vs. First Trust LongShort | IQ Hedge vs. ProShares Hedge Replication | IQ Hedge vs. IQ Merger Arbitrage |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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