Correlation Between IShares and Innovator Loup

Can any of the company-specific risk be diversified away by investing in both IShares and Innovator Loup 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 IShares and Innovator Loup into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IShares and Innovator Loup Frontier, you can compare the effects of market volatilities on IShares and Innovator Loup 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 IShares with a short position of Innovator Loup. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares and Innovator Loup.

Diversification Opportunities for IShares and Innovator Loup

0.0

Correlation Coefficient

IShares  Innovator Loup

Pay attention - limited upside

The 3 months correlation between IShares and Innovator is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IShares and Innovator Loup Frontier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Loup Frontier and IShares 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 IShares are associated (or correlated) with Innovator Loup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Loup Frontier has no effect on the direction of IShares i.e., IShares and Innovator Loup go up and down completely randomly.

Pair Corralation between IShares and Innovator Loup

If you would invest (100.00) in IShares on December 29, 2024 and sell it today you would earn a total of  100.00  from holding IShares or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

IShares  vs.  Innovator Loup Frontier

IShares

Risk-Adjusted Performance

Very Weak

Over the last 90 days IShares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, IShares is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Innovator Loup Frontier

Risk-Adjusted Performance

Very Weak

Over the last 90 days Innovator Loup Frontier has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Etf's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with IShares and Innovator Loup

The main advantage of trading using opposite IShares and Innovator Loup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares position performs unexpectedly, Innovator Loup 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 Innovator Loup will offset losses from the drop in Innovator Loup's long position.

The idea behind IShares and Innovator Loup Frontier pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.