Correlation Between TrueShares Structured and Innovator ETFs

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

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

Diversification Opportunities for TrueShares Structured and Innovator ETFs

-0.13

Correlation Coefficient

TrueShares Structured  Innovator ETFs

Good diversification

The 3 months correlation between TrueShares and Innovator is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding TrueShares Structured Outcome and Innovator ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator ETFs Trust and TrueShares Structured 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 TrueShares Structured Outcome are associated (or correlated) with Innovator ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator ETFs Trust has no effect on the direction of TrueShares Structured i.e., TrueShares Structured and Innovator ETFs go up and down completely randomly.

Pair Corralation between TrueShares Structured and Innovator ETFs

Given the investment horizon of 90 days TrueShares Structured Outcome is expected to generate 1.45 times more return on investment than Innovator ETFs. However, TrueShares Structured is 1.45 times more volatile than Innovator ETFs Trust. It trades about 0.21 of its potential returns per unit of risk. Innovator ETFs Trust is currently generating about 0.02 per unit of risk. If you would invest  3,761  in TrueShares Structured Outcome on September 4, 2024 and sell it today you would earn a total of  283.00  from holding TrueShares Structured Outcome or generate 7.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TrueShares Structured Outcome  vs.  Innovator ETFs Trust

TrueShares Structured

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TrueShares Structured Outcome are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, TrueShares Structured may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Innovator ETFs Trust

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Innovator ETFs Trust are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Innovator ETFs is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with TrueShares Structured and Innovator ETFs

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

The idea behind TrueShares Structured Outcome and Innovator ETFs Trust 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.