Correlation Between Innovator ETFs and IShares Core
Can any of the company-specific risk be diversified away by investing in both Innovator ETFs and IShares Core 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 IShares Core 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 iShares Core Aggressive, you can compare the effects of market volatilities on Innovator ETFs and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator ETFs and IShares Core.
Diversification Opportunities for Innovator ETFs and IShares Core
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovator and IShares is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Innovator ETFs Trust and iShares Core Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Aggressive 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Aggressive has no effect on the direction of Innovator ETFs i.e., Innovator ETFs and IShares Core go up and down completely randomly.
Pair Corralation between Innovator ETFs and IShares Core
Given the investment horizon of 90 days Innovator ETFs is expected to generate 1.58 times less return on investment than IShares Core. In addition to that, Innovator ETFs is 1.26 times more volatile than iShares Core Aggressive. It trades about 0.06 of its total potential returns per unit of risk. iShares Core Aggressive is currently generating about 0.12 per unit of volatility. If you would invest 8,516 in iShares Core Aggressive on September 3, 2025 and sell it today you would earn a total of 412.00 from holding iShares Core Aggressive or generate 4.84% 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. iShares Core Aggressive
Performance |
| Timeline |
| Innovator ETFs Trust |
| iShares Core Aggressive |
Innovator ETFs and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator ETFs and IShares Core
The main advantage of trading using opposite Innovator ETFs and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator ETFs position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Innovator ETFs vs. FT Vest Equity | Innovator ETFs vs. Northern Lights | Innovator ETFs vs. Diamond Hill Funds | Innovator ETFs vs. Dimensional International High |
| IShares Core vs. Aptus Defined Risk | IShares Core vs. Franklin FTSE Japan | IShares Core vs. iShares Core Conservative | IShares Core vs. iShares Core Moderate |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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