Correlation Between Innovator ETFs and SEI Investments
Can any of the company-specific risk be diversified away by investing in both Innovator ETFs and SEI Investments 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 Innovator ETFs and SEI Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovator ETFs Trust and SEI Investments, you can compare the effects of market volatilities on Innovator ETFs and SEI Investments 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 Innovator ETFs with a short position of SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator ETFs and SEI Investments.
Diversification Opportunities for Innovator ETFs and SEI Investments
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innovator and SEI is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Innovator ETFs Trust and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments and Innovator ETFs 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 Innovator ETFs Trust are associated (or correlated) with SEI Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI Investments has no effect on the direction of Innovator ETFs i.e., Innovator ETFs and SEI Investments go up and down completely randomly.
Pair Corralation between Innovator ETFs and SEI Investments
Given the investment horizon of 90 days Innovator ETFs Trust is expected to generate 0.4 times more return on investment than SEI Investments. However, Innovator ETFs Trust is 2.52 times less risky than SEI Investments. It trades about 0.23 of its potential returns per unit of risk. SEI Investments is currently generating about -0.17 per unit of risk. If you would invest 2,733 in Innovator ETFs Trust on November 28, 2024 and sell it today you would earn a total of 69.00 from holding Innovator ETFs Trust or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovator ETFs Trust vs. SEI Investments
Performance |
| Timeline |
| Innovator ETFs Trust |
| SEI Investments |
Innovator ETFs and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator ETFs and SEI Investments
The main advantage of trading using opposite Innovator ETFs and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator ETFs position performs unexpectedly, SEI Investments 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 SEI Investments will offset losses from the drop in SEI Investments' long position.| Innovator ETFs vs. JPMorgan Fundamental Data | Innovator ETFs vs. Matthews China Discovery | Innovator ETFs vs. Vanguard Mid Cap Index | Innovator ETFs vs. SPDR SP 400 |
| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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