Correlation Between IPath Series and Innovator Nasdaq
Can any of the company-specific risk be diversified away by investing in both IPath Series and Innovator Nasdaq 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 IPath Series and Innovator Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iPath Series B and Innovator Nasdaq 100 Power, you can compare the effects of market volatilities on IPath Series and Innovator Nasdaq 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 IPath Series with a short position of Innovator Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPath Series and Innovator Nasdaq.
Diversification Opportunities for IPath Series and Innovator Nasdaq
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPath and Innovator is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding iPath Series B and Innovator Nasdaq 100 Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Nasdaq 100 and IPath Series 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 iPath Series B are associated (or correlated) with Innovator Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Nasdaq 100 has no effect on the direction of IPath Series i.e., IPath Series and Innovator Nasdaq go up and down completely randomly.
Pair Corralation between IPath Series and Innovator Nasdaq
Considering the 90-day investment horizon iPath Series B is expected to under-perform the Innovator Nasdaq. In addition to that, IPath Series is 16.52 times more volatile than Innovator Nasdaq 100 Power. It trades about -0.07 of its total potential returns per unit of risk. Innovator Nasdaq 100 Power is currently generating about 0.18 per unit of volatility. If you would invest 5,147 in Innovator Nasdaq 100 Power on July 22, 2025 and sell it today you would earn a total of 122.00 from holding Innovator Nasdaq 100 Power or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iPath Series B vs. Innovator Nasdaq 100 Power
Performance |
| Timeline |
| iPath Series B |
| Innovator Nasdaq 100 |
IPath Series and Innovator Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPath Series and Innovator Nasdaq
The main advantage of trading using opposite IPath Series and Innovator Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPath Series position performs unexpectedly, Innovator Nasdaq 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 Nasdaq will offset losses from the drop in Innovator Nasdaq's long position.| IPath Series vs. iPath Series B | IPath Series vs. iShares SP GSCI | IPath Series vs. iShares Micro Cap ETF | IPath Series vs. ProShares SP 500 |
| Innovator Nasdaq vs. Innovator SP 500 | Innovator Nasdaq vs. Innovator Nasdaq 100 Power | Innovator Nasdaq vs. Innovator Equity Buffer | Innovator Nasdaq 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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