| TBJL Etf | | | USD 20.43 0.16 0.79% |
The current 90-days correlation between Innovator 20 Year and Innovator ETFs Trust is 0.32 (i.e., Weak diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Innovator moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Innovator 20 Year moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
Innovator Correlation With Market
Good diversification
The correlation between Innovator 20 Year and DJI is -0.17 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Innovator 20 Year and DJI in the same portfolio, assuming nothing else is changed.
Check out
World Market Map to better understand how to build diversified portfolios, which includes a position in Innovator 20 Year. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in inflation.
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 | | High negative correlations |
Innovator Constituents Risk-Adjusted IndicatorsThere is a big difference between Innovator Etf performing well and Innovator ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Innovator's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.