Correlation Between Innovator ETFs and Series Portfolios
Can any of the company-specific risk be diversified away by investing in both Innovator ETFs and Series Portfolios 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 Series Portfolios 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 Series Portfolios Trust, you can compare the effects of market volatilities on Innovator ETFs and Series Portfolios 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 Series Portfolios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator ETFs and Series Portfolios.
Diversification Opportunities for Innovator ETFs and Series Portfolios
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovator and Series is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Innovator ETFs Trust and Series Portfolios Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Series Portfolios Trust 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 Series Portfolios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Series Portfolios Trust has no effect on the direction of Innovator ETFs i.e., Innovator ETFs and Series Portfolios go up and down completely randomly.
Pair Corralation between Innovator ETFs and Series Portfolios
Given the investment horizon of 90 days Innovator ETFs is expected to generate 4.85 times less return on investment than Series Portfolios. But when comparing it to its historical volatility, Innovator ETFs Trust is 7.01 times less risky than Series Portfolios. It trades about 0.47 of its potential returns per unit of risk. Series Portfolios Trust is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,461 in Series Portfolios Trust on September 3, 2024 and sell it today you would earn a total of 327.00 from holding Series Portfolios Trust or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovator ETFs Trust vs. Series Portfolios Trust
Performance |
| Timeline |
| Innovator ETFs Trust |
| Series Portfolios Trust |
Innovator ETFs and Series Portfolios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator ETFs and Series Portfolios
The main advantage of trading using opposite Innovator ETFs and Series Portfolios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator ETFs position performs unexpectedly, Series Portfolios 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 Series Portfolios will offset losses from the drop in Series Portfolios' long position.| Innovator ETFs vs. Innovator Growth Accelerated | Innovator ETFs vs. Innovator ETFs Trust | Innovator ETFs vs. Innovator ETFs Trust | Innovator ETFs vs. Innovator ETFs Trust |
| Series Portfolios vs. FundX Aggressive ETF | Series Portfolios vs. FT Vest Equity | Series Portfolios vs. Zillow Group Class | Series Portfolios vs. Northern Lights |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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