Correlation Between Innovator ETFs and Knife River
Can any of the company-specific risk be diversified away by investing in both Innovator ETFs and Knife River 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 Knife River 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 Knife River, you can compare the effects of market volatilities on Innovator ETFs and Knife River 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 Knife River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator ETFs and Knife River.
Diversification Opportunities for Innovator ETFs and Knife River
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innovator and Knife is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Innovator ETFs Trust and Knife River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knife River 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 Knife River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knife River has no effect on the direction of Innovator ETFs i.e., Innovator ETFs and Knife River go up and down completely randomly.
Pair Corralation between Innovator ETFs and Knife River
Given the investment horizon of 90 days Innovator ETFs Trust is expected to generate 0.02 times more return on investment than Knife River. However, Innovator ETFs Trust is 49.77 times less risky than Knife River. It trades about 0.29 of its potential returns per unit of risk. Knife River is currently generating about -0.11 per unit of risk. If you would invest 2,497 in Innovator ETFs Trust on November 28, 2024 and sell it today you would earn a total of 8.00 from holding Innovator ETFs Trust or generate 0.32% 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. Knife River
Performance |
| Timeline |
| Innovator ETFs Trust |
| Knife River |
Innovator ETFs and Knife River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator ETFs and Knife River
The main advantage of trading using opposite Innovator ETFs and Knife River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator ETFs position performs unexpectedly, Knife River 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 Knife River will offset losses from the drop in Knife River's long position.| Innovator ETFs vs. FT Vest Equity | Innovator ETFs vs. Northern Lights | Innovator ETFs vs. Dimensional International High | Innovator ETFs vs. First Trust Exchange Traded |
| Knife River vs. Primo Brands | Knife River vs. Thai Beverage PCL | Knife River vs. Vita Coco | Knife River vs. Willamette Valley Vineyards |
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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