Correlation Between IShares JP and Innovator Capital
Can any of the company-specific risk be diversified away by investing in both IShares JP and Innovator Capital 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 JP and Innovator Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares JP Morgan and Innovator Capital Management, you can compare the effects of market volatilities on IShares JP and Innovator Capital 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 JP with a short position of Innovator Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares JP and Innovator Capital.
Diversification Opportunities for IShares JP and Innovator Capital
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Innovator is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding iShares JP Morgan and Innovator Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Capital and IShares JP 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 JP Morgan are associated (or correlated) with Innovator Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Capital has no effect on the direction of IShares JP i.e., IShares JP and Innovator Capital go up and down completely randomly.
Pair Corralation between IShares JP and Innovator Capital
Given the investment horizon of 90 days iShares JP Morgan is expected to generate 2.93 times more return on investment than Innovator Capital. However, IShares JP is 2.93 times more volatile than Innovator Capital Management. It trades about 0.15 of its potential returns per unit of risk. Innovator Capital Management is currently generating about 0.26 per unit of risk. If you would invest 4,528 in iShares JP Morgan on August 25, 2025 and sell it today you would earn a total of 72.00 from holding iShares JP Morgan or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 49.23% |
| Values | Daily Returns |
iShares JP Morgan vs. Innovator Capital Management
Performance |
| Timeline |
| iShares JP Morgan |
| Innovator Capital |
Risk-Adjusted Performance
Solid
Weak | Strong |
IShares JP and Innovator Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares JP and Innovator Capital
The main advantage of trading using opposite IShares JP and Innovator Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares JP position performs unexpectedly, Innovator Capital 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 Capital will offset losses from the drop in Innovator Capital's long position.| IShares JP vs. iShares JP Morgan | IShares JP vs. iShares BB Rated | IShares JP vs. iShares iBonds Dec | IShares JP vs. iShares Interest Rate |
| Innovator Capital vs. Janus Henderson Sustainable | Innovator Capital vs. Thrivent High Yield | Innovator Capital vs. Morningstar Unconstrained Allocation | Innovator Capital vs. Via Renewables |
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.
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