Correlation Between Innovator Equity and VanEck Bitcoin

Can any of the company-specific risk be diversified away by investing in both Innovator Equity and VanEck Bitcoin 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 Equity and VanEck Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Innovator Equity Accelerated and VanEck Bitcoin Trust, you can compare the effects of market volatilities on Innovator Equity and VanEck Bitcoin 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 Equity with a short position of VanEck Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator Equity and VanEck Bitcoin.

Diversification Opportunities for Innovator Equity and VanEck Bitcoin

0.87

Correlation Coefficient

Innovator Equity  VanEck Bitcoin

Very poor diversification

The 3 months correlation between Innovator and VanEck is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Innovator Equity Accelerated and VanEck Bitcoin Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Bitcoin Trust and Innovator Equity 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 Equity Accelerated are associated (or correlated) with VanEck Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Bitcoin Trust has no effect on the direction of Innovator Equity i.e., Innovator Equity and VanEck Bitcoin go up and down completely randomly.

Pair Corralation between Innovator Equity and VanEck Bitcoin

Given the investment horizon of 90 days Innovator Equity is expected to generate 2.6 times less return on investment than VanEck Bitcoin. But when comparing it to its historical volatility, Innovator Equity Accelerated is 3.84 times less risky than VanEck Bitcoin. It trades about 0.23 of its potential returns per unit of risk. VanEck Bitcoin Trust is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,670  in VanEck Bitcoin Trust on May 5, 2025 and sell it today you would earn a total of  531.00  from holding VanEck Bitcoin Trust or generate 19.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Innovator Equity Accelerated  vs.  VanEck Bitcoin Trust

Innovator Equity Acc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Innovator Equity Accelerated are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Innovator Equity may actually be approaching a critical reversion point that can send shares even higher in September 2025.

VanEck Bitcoin Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Bitcoin Trust are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain fundamental indicators, VanEck Bitcoin disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Innovator Equity and VanEck Bitcoin

The main advantage of trading using opposite Innovator Equity and VanEck Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator Equity position performs unexpectedly, VanEck Bitcoin 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 VanEck Bitcoin will offset losses from the drop in VanEck Bitcoin's long position.

The idea behind Innovator Equity Accelerated and VanEck Bitcoin Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.