Correlation Between Innovator ETFs and Leisure Fund
Can any of the company-specific risk be diversified away by investing in both Innovator ETFs and Leisure Fund 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 Leisure Fund 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 Leisure Fund Class, you can compare the effects of market volatilities on Innovator ETFs and Leisure Fund 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 Leisure Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator ETFs and Leisure Fund.
Diversification Opportunities for Innovator ETFs and Leisure Fund
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Innovator and Leisure is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Innovator ETFs Trust and Leisure Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leisure Fund Class 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 Leisure Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leisure Fund Class has no effect on the direction of Innovator ETFs i.e., Innovator ETFs and Leisure Fund go up and down completely randomly.
Pair Corralation between Innovator ETFs and Leisure Fund
Given the investment horizon of 90 days Innovator ETFs Trust is expected to generate 0.39 times more return on investment than Leisure Fund. However, Innovator ETFs Trust is 2.55 times less risky than Leisure Fund. It trades about 0.06 of its potential returns per unit of risk. Leisure Fund Class is currently generating about -0.18 per unit of risk. If you would invest 2,783 in Innovator ETFs Trust on August 26, 2025 and sell it today you would earn a total of 35.00 from holding Innovator ETFs Trust or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovator ETFs Trust vs. Leisure Fund Class
Performance |
| Timeline |
| Innovator ETFs Trust |
| Leisure Fund Class |
Innovator ETFs and Leisure Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator ETFs and Leisure Fund
The main advantage of trading using opposite Innovator ETFs and Leisure Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator ETFs position performs unexpectedly, Leisure Fund 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 Leisure Fund will offset losses from the drop in Leisure Fund'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 |
| Leisure Fund vs. Fisher Fixed Income | Leisure Fund vs. Rationalrgn Hedged Equity | Leisure Fund vs. Nationwide Investor Destinations | Leisure Fund vs. Sei Insti Mgd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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