Correlation Between NYSE Composite and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Innovator ETFs 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 NYSE Composite and Innovator ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Innovator ETFs Trust, you can compare the effects of market volatilities on NYSE Composite and Innovator ETFs 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 NYSE Composite with a short position of Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Innovator ETFs.
Diversification Opportunities for NYSE Composite and Innovator ETFs
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Innovator is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Innovator ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator ETFs Trust and NYSE Composite 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 NYSE Composite are associated (or correlated) with Innovator ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator ETFs Trust has no effect on the direction of NYSE Composite i.e., NYSE Composite and Innovator ETFs go up and down completely randomly.
Pair Corralation between NYSE Composite and Innovator ETFs
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.84 times more return on investment than Innovator ETFs. However, NYSE Composite is 1.19 times less risky than Innovator ETFs. It trades about 0.26 of its potential returns per unit of risk. Innovator ETFs Trust is currently generating about -0.18 per unit of risk. If you would invest 1,945,669 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 75,313 from holding NYSE Composite or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Innovator ETFs Trust
Performance |
| Timeline |
NYSE Composite and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Innovator ETFs Trust
Pair trading matchups for Innovator ETFs
Pair Trading with NYSE Composite and Innovator ETFs
The main advantage of trading using opposite NYSE Composite and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Innovator ETFs 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 Innovator ETFs will offset losses from the drop in Innovator ETFs' long position.| NYSE Composite vs. Delek Drilling | NYSE Composite vs. Helmerich and Payne | NYSE Composite vs. Waste Management | NYSE Composite vs. US Global Investors |
| Innovator ETFs vs. ABIVAX Socit Anonyme | Innovator ETFs vs. Pinnacle Sherman Multi Strategy | Innovator ETFs vs. Morningstar Unconstrained Allocation | Innovator ETFs vs. SPACE |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| CEOs Directory Screen CEOs from public companies around the world |