Correlation Between Innovator ETFs and AllianzIM Large
Can any of the company-specific risk be diversified away by investing in both Innovator ETFs and AllianzIM Large 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 AllianzIM Large 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 AllianzIM Large Cap, you can compare the effects of market volatilities on Innovator ETFs and AllianzIM Large 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 AllianzIM Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator ETFs and AllianzIM Large.
Diversification Opportunities for Innovator ETFs and AllianzIM Large
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innovator and AllianzIM is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Innovator ETFs Trust and AllianzIM Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllianzIM Large Cap 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 AllianzIM Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllianzIM Large Cap has no effect on the direction of Innovator ETFs i.e., Innovator ETFs and AllianzIM Large go up and down completely randomly.
Pair Corralation between Innovator ETFs and AllianzIM Large
Given the investment horizon of 90 days Innovator ETFs is expected to generate 3.03 times less return on investment than AllianzIM Large. But when comparing it to its historical volatility, Innovator ETFs Trust is 1.29 times less risky than AllianzIM Large. It trades about 0.06 of its potential returns per unit of risk. AllianzIM Large Cap is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,462 in AllianzIM Large Cap on September 3, 2024 and sell it today you would earn a total of 447.00 from holding AllianzIM Large Cap or generate 12.91% 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. AllianzIM Large Cap
Performance |
| Timeline |
| Innovator ETFs Trust |
| AllianzIM Large Cap |
Innovator ETFs and AllianzIM Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator ETFs and AllianzIM Large
The main advantage of trading using opposite Innovator ETFs and AllianzIM Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator ETFs position performs unexpectedly, AllianzIM Large 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 AllianzIM Large will offset losses from the drop in AllianzIM Large's long position.| Innovator ETFs vs. ProShares Ultra MSCI | Innovator ETFs vs. ProShares UltraShort MSCI | Innovator ETFs vs. SWP Growth Income | Innovator ETFs vs. Invesco DB Dollar |
| AllianzIM Large vs. Innovator ETFs Trust | AllianzIM Large vs. First Trust Cboe | AllianzIM Large vs. FT Cboe Vest | AllianzIM Large vs. Innovator SP 500 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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