Correlation Between Innovator Capital and VanEck ETF
Can any of the company-specific risk be diversified away by investing in both Innovator Capital and VanEck ETF 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 Capital and VanEck ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovator Capital Management and VanEck ETF Trust, you can compare the effects of market volatilities on Innovator Capital and VanEck ETF 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 Capital with a short position of VanEck ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator Capital and VanEck ETF.
Diversification Opportunities for Innovator Capital and VanEck ETF
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Innovator and VanEck is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Innovator Capital Management and VanEck ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck ETF Trust and Innovator Capital 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 Capital Management are associated (or correlated) with VanEck ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck ETF Trust has no effect on the direction of Innovator Capital i.e., Innovator Capital and VanEck ETF go up and down completely randomly.
Pair Corralation between Innovator Capital and VanEck ETF
Given the investment horizon of 90 days Innovator Capital Management is expected to generate 1.1 times more return on investment than VanEck ETF. However, Innovator Capital is 1.1 times more volatile than VanEck ETF Trust. It trades about 0.06 of its potential returns per unit of risk. VanEck ETF Trust is currently generating about 0.06 per unit of risk. If you would invest 2,160 in Innovator Capital Management on August 30, 2024 and sell it today you would earn a total of 732.00 from holding Innovator Capital Management or generate 33.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 92.14% |
| Values | Daily Returns |
Innovator Capital Management vs. VanEck ETF Trust
Performance |
| Timeline |
| Innovator Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| VanEck ETF Trust |
Innovator Capital and VanEck ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator Capital and VanEck ETF
The main advantage of trading using opposite Innovator Capital and VanEck ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator Capital position performs unexpectedly, VanEck ETF 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 VanEck ETF will offset losses from the drop in VanEck ETF's long position.| Innovator Capital vs. AXS TSLA Bear | Innovator Capital vs. Direxion Shares ETF | Innovator Capital vs. Direxion Shares ETF | Innovator Capital vs. Direxion Shares ETF |
| VanEck ETF vs. VanEck Morningstar International | VanEck ETF vs. VanEck Vectors ETF | VanEck ETF vs. VanEck Morningstar Wide | VanEck ETF vs. VanEck Inflation Allocation |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |