Correlation Between ProShares Inflation and IQ Hedge
Can any of the company-specific risk be diversified away by investing in both ProShares Inflation 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 ProShares Inflation and IQ Hedge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Inflation Expectations and IQ Hedge Multi Strategy, you can compare the effects of market volatilities on ProShares Inflation 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 ProShares Inflation with a short position of IQ Hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Inflation and IQ Hedge.
Diversification Opportunities for ProShares Inflation and IQ Hedge
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and QAI is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Inflation Expectatio 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 ProShares Inflation 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 ProShares Inflation Expectations 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 ProShares Inflation i.e., ProShares Inflation and IQ Hedge go up and down completely randomly.
Pair Corralation between ProShares Inflation and IQ Hedge
Given the investment horizon of 90 days ProShares Inflation is expected to generate 1.3 times less return on investment than IQ Hedge. In addition to that, ProShares Inflation is 1.24 times more volatile than IQ Hedge Multi Strategy. It trades about 0.04 of its total potential returns per unit of risk. IQ Hedge Multi Strategy is currently generating about 0.07 per unit of volatility. If you would invest 2,858 in IQ Hedge Multi Strategy on April 20, 2025 and sell it today you would earn a total of 398.00 from holding IQ Hedge Multi Strategy or generate 13.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Inflation Expectatio vs. IQ Hedge Multi Strategy
Performance |
| Timeline |
| ProShares Inflation |
| IQ Hedge Multi |
ProShares Inflation and IQ Hedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Inflation and IQ Hedge
The main advantage of trading using opposite ProShares Inflation and IQ Hedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Inflation 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.| ProShares Inflation vs. SPDR SSgA Multi Asset | ProShares Inflation vs. ProShares Hedge Replication | ProShares Inflation vs. ProShares Short 7 10 | ProShares Inflation vs. ProShares Merger ETF |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |