Correlation Between AB High and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both AB High 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 AB High and Innovator ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB High Dividend and Innovator ETFs Trust, you can compare the effects of market volatilities on AB High 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 AB High with a short position of Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB High and Innovator ETFs.
Diversification Opportunities for AB High and Innovator ETFs
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HIDV and Innovator is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AB High Dividend 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 AB High 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 AB High Dividend 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 AB High i.e., AB High and Innovator ETFs go up and down completely randomly.
Pair Corralation between AB High and Innovator ETFs
Given the investment horizon of 90 days AB High Dividend is expected to generate 1.67 times more return on investment than Innovator ETFs. However, AB High is 1.67 times more volatile than Innovator ETFs Trust. It trades about 0.09 of its potential returns per unit of risk. Innovator ETFs Trust is currently generating about 0.11 per unit of risk. If you would invest 7,712 in AB High Dividend on September 3, 2025 and sell it today you would earn a total of 328.00 from holding AB High Dividend or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB High Dividend vs. Innovator ETFs Trust
Performance |
| Timeline |
| AB High Dividend |
| Innovator ETFs Trust |
AB High and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB High and Innovator ETFs
The main advantage of trading using opposite AB High and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB High 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.| AB High vs. Strategy Shares | AB High vs. Freedom Day Dividend | AB High vs. Franklin Templeton ETF | AB High vs. iShares MSCI China |
| Innovator ETFs vs. FT Vest Equity | Innovator ETFs vs. Northern Lights | Innovator ETFs vs. Diamond Hill Funds | Innovator ETFs vs. Dimensional International High |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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