Correlation Between Innovator ETFs and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Innovator ETFs and Ashmore Emerging 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 Innovator ETFs and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovator ETFs Trust and Ashmore Emerging Markets, you can compare the effects of market volatilities on Innovator ETFs and Ashmore Emerging 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 Innovator ETFs with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator ETFs and Ashmore Emerging.
Diversification Opportunities for Innovator ETFs and Ashmore Emerging
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovator and Ashmore is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Innovator ETFs Trust and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets and Innovator ETFs 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 Innovator ETFs Trust are associated (or correlated) with Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Innovator ETFs i.e., Innovator ETFs and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Innovator ETFs and Ashmore Emerging
Given the investment horizon of 90 days Innovator ETFs is expected to generate 3.35 times less return on investment than Ashmore Emerging. But when comparing it to its historical volatility, Innovator ETFs Trust is 2.61 times less risky than Ashmore Emerging. It trades about 0.09 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 913.00 in Ashmore Emerging Markets on September 4, 2025 and sell it today you would earn a total of 55.00 from holding Ashmore Emerging Markets or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovator ETFs Trust vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Innovator ETFs Trust |
| Ashmore Emerging Markets |
Innovator ETFs and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator ETFs and Ashmore Emerging
The main advantage of trading using opposite Innovator ETFs and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator ETFs position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Innovator ETFs vs. Strategy Shares | Innovator ETFs vs. Freedom Day Dividend | Innovator ETFs vs. Franklin Templeton ETF | Innovator ETFs vs. iShares MSCI China |
| Ashmore Emerging vs. Balanced Fund Retail | Ashmore Emerging vs. Qs Large Cap | Ashmore Emerging vs. Eip Growth And | Ashmore Emerging vs. Gmo Quality Fund |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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