Correlation Between Innovator ETFs and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Innovator ETFs and Guinness Atkinson 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 Guinness Atkinson 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 Guinness Atkinson Funds, you can compare the effects of market volatilities on Innovator ETFs and Guinness Atkinson 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 Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator ETFs and Guinness Atkinson.
Diversification Opportunities for Innovator ETFs and Guinness Atkinson
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Innovator and Guinness is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Innovator ETFs Trust and Guinness Atkinson Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Funds 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 Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson Funds has no effect on the direction of Innovator ETFs i.e., Innovator ETFs and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Innovator ETFs and Guinness Atkinson
Given the investment horizon of 90 days Innovator ETFs Trust is expected to generate 0.47 times more return on investment than Guinness Atkinson. However, Innovator ETFs Trust is 2.12 times less risky than Guinness Atkinson. It trades about 0.14 of its potential returns per unit of risk. Guinness Atkinson Funds is currently generating about -0.01 per unit of risk. If you would invest 1,941 in Innovator ETFs Trust on September 3, 2024 and sell it today you would earn a total of 978.00 from holding Innovator ETFs Trust or generate 50.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovator ETFs Trust vs. Guinness Atkinson Funds
Performance |
| Timeline |
| Innovator ETFs Trust |
| Guinness Atkinson Funds |
Innovator ETFs and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator ETFs and Guinness Atkinson
The main advantage of trading using opposite Innovator ETFs and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator ETFs position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| Innovator ETFs vs. Innovator ETFs Trust | Innovator ETFs vs. Innovator Growth Accelerated | Innovator ETFs vs. Innovator Growth 100 Accelerated | Innovator ETFs vs. Innovator ETFs Trust |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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