Correlation Between Innovator Nasdaq and Innovator
Can any of the company-specific risk be diversified away by investing in both Innovator Nasdaq and Innovator 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 Nasdaq and Innovator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovator Nasdaq 100 Power and Innovator SP 500, you can compare the effects of market volatilities on Innovator Nasdaq and Innovator 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 Nasdaq with a short position of Innovator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator Nasdaq and Innovator.
Diversification Opportunities for Innovator Nasdaq and Innovator
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Innovator and Innovator is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Innovator Nasdaq 100 Power and Innovator SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator SP 500 and Innovator Nasdaq 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 Nasdaq 100 Power are associated (or correlated) with Innovator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator SP 500 has no effect on the direction of Innovator Nasdaq i.e., Innovator Nasdaq and Innovator go up and down completely randomly.
Pair Corralation between Innovator Nasdaq and Innovator
Given the investment horizon of 90 days Innovator Nasdaq is expected to generate 1.14 times less return on investment than Innovator. In addition to that, Innovator Nasdaq is 1.57 times more volatile than Innovator SP 500. It trades about 0.06 of its total potential returns per unit of risk. Innovator SP 500 is currently generating about 0.11 per unit of volatility. If you would invest 4,397 in Innovator SP 500 on October 6, 2025 and sell it today you would earn a total of 88.00 from holding Innovator SP 500 or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovator Nasdaq 100 Power vs. Innovator SP 500
Performance |
| Timeline |
| Innovator Nasdaq 100 |
| Innovator SP 500 |
Innovator Nasdaq and Innovator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator Nasdaq and Innovator
The main advantage of trading using opposite Innovator Nasdaq and Innovator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator Nasdaq position performs unexpectedly, Innovator 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 will offset losses from the drop in Innovator's long position.| Innovator Nasdaq vs. Innovator Nasdaq 100 Power | Innovator Nasdaq vs. Innovator Equity Ultra | Innovator Nasdaq vs. Innovator SP 500 | Innovator Nasdaq vs. FT Cboe Vest |
| Innovator vs. Innovator Equity Accelerated | Innovator vs. Innovator Russell 2000 | Innovator vs. Innovator SP 500 | Innovator vs. Innovator SP 500 |
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.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |