Correlation Between Innovator Premium and EA Series
Can any of the company-specific risk be diversified away by investing in both Innovator Premium and EA Series 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 Premium and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovator Premium Income and EA Series Trust, you can compare the effects of market volatilities on Innovator Premium and EA Series 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 Premium with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator Premium and EA Series.
Diversification Opportunities for Innovator Premium and EA Series
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Innovator and MDLV is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Innovator Premium Income and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and Innovator Premium 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 Premium Income are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Innovator Premium i.e., Innovator Premium and EA Series go up and down completely randomly.
Pair Corralation between Innovator Premium and EA Series
Given the investment horizon of 90 days Innovator Premium is expected to generate 2.45 times less return on investment than EA Series. But when comparing it to its historical volatility, Innovator Premium Income is 4.68 times less risky than EA Series. It trades about 0.39 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,700 in EA Series Trust on September 1, 2024 and sell it today you would earn a total of 58.00 from holding EA Series Trust or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Innovator Premium Income vs. EA Series Trust
Performance |
| Timeline |
| Innovator Premium Income |
| EA Series Trust |
Innovator Premium and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator Premium and EA Series
The main advantage of trading using opposite Innovator Premium and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator Premium position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| Innovator Premium vs. Innovator ETFs Trust | Innovator Premium vs. First Trust Cboe | Innovator Premium vs. Innovator SP 500 | Innovator Premium vs. Innovator Equity Power |
| EA Series vs. FT Vest Equity | EA Series vs. Northern Lights | EA Series vs. Dimensional International High | EA Series vs. Matthews China Discovery |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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