Correlation Between First Trust/confluence and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both First Trust/confluence 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 First Trust/confluence and Innovator ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trustconfluence Small and Innovator ETFs Trust, you can compare the effects of market volatilities on First Trust/confluence 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 First Trust/confluence with a short position of Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust/confluence and Innovator ETFs.
Diversification Opportunities for First Trust/confluence and Innovator ETFs
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Innovator is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding First Trustconfluence Small 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 First Trust/confluence 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 First Trustconfluence Small 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 First Trust/confluence i.e., First Trust/confluence and Innovator ETFs go up and down completely randomly.
Pair Corralation between First Trust/confluence and Innovator ETFs
Assuming the 90 days horizon First Trustconfluence Small is expected to under-perform the Innovator ETFs. In addition to that, First Trust/confluence is 3.2 times more volatile than Innovator ETFs Trust. It trades about -0.09 of its total potential returns per unit of risk. Innovator ETFs Trust is currently generating about 0.06 per unit of volatility. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trustconfluence Small vs. Innovator ETFs Trust
Performance |
| Timeline |
| First Trust/confluence |
| Innovator ETFs Trust |
First Trust/confluence and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust/confluence and Innovator ETFs
The main advantage of trading using opposite First Trust/confluence and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust/confluence 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.| First Trust/confluence vs. Old Westbury Fixed | First Trust/confluence vs. Scout E Bond | First Trust/confluence vs. Transamerica Bond Class | First Trust/confluence vs. Enhanced Fixed Income |
| Innovator ETFs vs. Strategy Shares | Innovator ETFs vs. Freedom Day Dividend | Innovator ETFs vs. Franklin Templeton ETF | Innovator ETFs vs. iShares MSCI China |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |