Innovative Industrial Properties Stock Volatility

IIPR Stock  USD 57.29  0.70  1.24%   
Innovative Industrial's volatility, beta, and downside-risk metrics are presented in one read. It carries a 1.45 long-term beta, meaning it tends to be slightly more volatile than the broader market. The stock shows moderate price volatility over the last 3 months.

Sharpe Ratio = 0.1196

Expected Return ↓
Minimal
Low
Moderate
Elevated
High
Leading
Strong
Moderate
Modest
Flat
Below
Ideal
IIPR
Worst
← Lower RiskHigher Risk →
Innovative Industrial Properties reported a Market Risk Adjusted Performance of 0.3%, a Risk of 3.12, and a Risk Adjusted Performance of 0.1%. At roughly 9% of its observed historical range, the stock is trading within its prior trend boundaries.
Key indicators related to Innovative Industrial's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity

Key risk metrics for Innovative Industrial (3 Months):

 Beta
1.11
 Alpha
0.32
 Risk
3.12
 Sharpe Ratio
0.12
 Expected Return
0.37

Assets With Similar Volatility

  0.71HR Healthcare Realty TrustPairCorr
  0.79AAT American Assets TrustPairCorr
  0.85DHC Diversified Healthcare TrustPairCorr
  0.63EGP EastGroup PropertiesPairCorr
  0.66FVR FrontView REITPairCorr
  0.76NSR National Storage REITPairCorr
  0.64HPP Hudson Pacific PropertiesPairCorr
  0.7GOOD Gladstone CommercialPairCorr

Lower Correlation Assets

  0.67FSP Franklin Street PropertiesPairCorr
  0.65CIO City OfficePairCorr
  0.53ARE Alexandria Real EstatePairCorr
  0.41ESRT Empire State RealtyPairCorr
  0.4ESBA Empire State RealtyPairCorr

Sensitivity To Market

Innovative Industrial Properties exhibits a beta of 1.11, representing its market-relative sensitivity. This coefficient separates systematic risk from company-specific volatility. Total return dispersion is approximately 3.12%. Innovative Industrial Properties return patterns over the selected horizon reflect a moderate level of variability, based on dispersion and downside-focused statistics. Standard deviation is near 3.11%. Options markets imply a forward-looking volatility estimate near 57.0%. This indicates expectations for moderate future movement relative to historical averages. Equity volatility compresses in calm markets and expands quickly when uncertainty increases. Stock dispersion changes materially during earnings seasons and macro data releases.
Current 90-day Innovative Industrial correlation with market (Dow Jones Industrial)
α0.32   β1.11
3 Months Beta |Innovative Industrial Demand Trend
Current 90-day Innovative Industrial correlation with market (Dow Jones Industrial)

Downside Risk

For Innovative, the standard deviation figure expresses the observed spread of daily returns over the selected period. The magnitude of Innovative standard deviation determines where it falls on the volatility spectrum relative to peers.
Standard Deviation
    
  3.12  
Distinguishing between standard deviation and downside deviation sharpens the risk picture for Innovative Industrial. Standard deviation reflects total return dispersion for Innovative Industrial, while downside deviation captures only the adverse portion of Innovative Industrial's returns. Innovative Industrial Properties reported a Downside Deviation of 2.36, a Downside Variance of 5.58, and a Maximum Drawdown of 18.37.

Innovative Put Option Risk Profile Based on 2026-07-17 Contracts

Innovative Industrial Properties reported an Option Implied Volatility of 0.57 and an Option Max Pain Price of 55. Put options written on Innovative Industrial allow holders to profit from or offset a decline in Innovative Industrial's price. A put option on Innovative Stock gives the buyer the right to sell Innovative Industrial at the strike price until expiration.

Innovative Industrial's PUT expiring on 2026-07-17

   Profit   
       Innovative Industrial Price At Expiration  

Current Innovative Industrial Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
PutIIPR260717P00025000-0.0331610.00247642026-07-170.0 - 0.950.0View
PutIIPR260717P00030000-0.0415150.003706122026-07-170.0 - 0.950.0View
PutIIPR260717P00035000-0.052280.00564552026-07-170.0 - 0.950.0View
PutIIPR260717P00040000-0.0733470.009219472026-07-170.15 - 0.70.0View
PutIIPR260717P00045000-0.1216780.01626711522026-07-170.7 - 1.00.0View
PutIIPR260717P00050000-0.2368340.0266951092026-07-171.55 - 2.00.0View
PutIIPR260717P00055000-0.4022990.035351262026-07-173.2 - 3.80.0View
PutIIPR260717P00060000-0.578310.034614392026-07-175.2 - 7.70.0View
PutIIPR260717P00065000-0.7182470.02840752026-07-179.0 - 11.40.0View
PutIIPR260717P00070000-0.8023130.02105662026-07-1713.5 - 15.70.0View
PutIIPR260717P00075000-0.8703510.01490132026-07-1717.6 - 20.60.0View
View All Innovative Industrial Options

Stock Volatility Analysis

For Innovative Industrial, understanding volatility is essential to assessing portfolio risk contribution. It indicates how dramatically Innovative Industrial's price swings over a specific time horizon.
Transformation
This analysis covers sixty-one data points across the selected time horizon. The Average Price transformation calculates the mean of Innovative Industrial's open, high, low, and close for each trading period. By incorporating all four price components equally, it provides a balanced representation of each period's trading activity. Compared to using the closing price alone, the average price reduces the influence of end-of-day positioning and can serve as a smoother input for other technical indicators.

Projected Return Density Against Market

Given a 90-day horizon, Innovative Industrial has a beta of 1.1104. This usually indicates Innovative Industrial Properties market returns are sensible to returns on the market. As the market goes up or down, Innovative Industrial tends to follow.
The risk profile of Innovative Industrial includes exposure to market fluctuations and company or sector-specific developments. Systematic components persist despite diversification. Innovative Industrial Properties reported a Downside Deviation of 2.36, a Mean Deviation of 2.03, and an Option Implied Volatility of 0.57.
Innovative Industrial Properties has an alpha of 0.324, implying that it can generate a 0.324 percent excess return over Dow Jones Industrial after adjusting for the inherent market risk (beta).
   Predicted Return Distribution   
       Density  
Innovative Industrial's volatility is typically evaluated with standard deviation and beta. Standard deviation reflects how far Innovative Industrial's returns usually move from the mean over the selected horizon.

What Drives Innovative Industrial's Price Volatility?

Industry Dynamics

Innovative Industrial's volatility can rise when competitive dynamics or demand conditions shift across the Diversified REITs sector.

Political and Economic Environment

Changes in fiscal policy, rates, and growth expectations affect market-wide risk premiums and spill into Innovative Industrial's trading.

Innovative Industrial's Company-Specific Factors

Event risk around earnings, forecasts, and operating performance can create abrupt price dispersion in Innovative Industrial.

Stock Risk Measures

Given a 90-day horizon, the coefficient of variation of Innovative Industrial is 836.27. The daily returns are distributed with a variance of 9.73 and standard deviation of 3.12. The mean deviation of Innovative Industrial Properties is currently at 2.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.96
α
Alpha over Dow Jones
0.32
β
Beta against Dow Jones1.11
σ
Overall volatility
3.12
Ir
Information ratio 0.10

Stock Return Volatility

Innovative Industrial return volatility captures the typical daily swing in stock returns relative to the mean over the selected period. The company has volatility of 3.1196% on return distribution over a 90-day investment horizon. Meanwhile, Dow Jones Industrial reported 0.9237% volatility on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

FORUMH
EFCARI
TRTXLADR
TRTXEFC
UMHTRTX
FORTRTX
  

High negative correlations

FORVRE
VRETRTX
VREKREF
UMHVRE
VRELADR
PLYMARI

Risk-Adjusted Indicators

Innovative Industrial Company can look attractive on recent price action while risk efficiency lags the peer group. Risk-adjusted metrics help compare Innovative Industrial's efficiency and downside exposure against peers on a like-for-like basis. These indicators are quantitative in nature and measure volatility and risk-adjusted expected returns across different positions.

Risk Metrics, Assumptions & Methodology

Standard deviation for Innovative Industrial measures how widely returns scatter around their average over a given period. Dispersion compression can indicate low-information regimes where prices drift on thin conviction. Innovative Industrial has a market cap of 1.65 billion, P/E of 36.04, ROE of 6.29%.

Innovative Industrial Properties analytics rely on periodic company reporting and market reference feeds, with quality checks and normalization applied. Volatility and downside metrics are estimated from historical return dispersion.

Editorial review and methodology oversight provided by: Ellen Johnson, Member of Macroaxis Editorial Board

Volatility Profile Summary

Recent data suggests that Innovative Industrial Properties is more volatile than Dow Jones Industrial by approximately 3.39x over the selected horizon. This differential reflects the relative dispersion of returns and frames how the asset responds to broader market conditions. Observed price behavior indicates modest directional movement within the current volatility regime. Across the current 90-day horizon, that places the security below 28% of the broader equity and portfolio universe on a pure volatility basis. This positioning reflects relative dispersion compared to peers rather than extreme instability.

Innovative Industrial Properties with characteristics aligned to broad market upside participation. This price-change note interprets the latest move in the context of short-horizon trading behavior. It gains reliability when combined with broader risk controls and volatility-adjusted analysis. a large bullish trend. Return distributions derived from historical modeling outline a range of potential outcomes over the selected 90-day horizon. View Innovative Industrial probability analysis.

Very good diversification
Across the chosen horizon, Innovative Industrial and Dow Jones show a correlation of 0.02 and fall into the Very good diversification bucket. Lower overlap tends to improve diversification, while higher overlap means both positions carry similar risk.

Additional Risk Indicators

Risk analysis around Innovative Industrial Properties gains depth when secondary indicators confirm, refine, or challenge the basic volatility picture. The practical goal is to identify how much risk is being accepted and whether that risk still fits the thesis.

Innovative Industrial Suggested Diversification Pairs

Pair analysis provides a framework for evaluating relative performance between Innovative Industrial Properties and comparable securities. Pair trading is less about prediction in isolation and more about identifying relative mispricing between related positions.
While pairing positions reduces portfolio risk, some forms of risk persist no matter which instruments are combined. No matter how well a pair is constructed around Innovative Industrial, market-wide risk remains. What pair trading can address is Innovative Industrial's unsystematic risk - the portion driven by company or sector-specific factors rather than broad market forces.