Correlation Between YieldMax AMZN and Commodity Return

Can any of the company-specific risk be diversified away by investing in both YieldMax AMZN and Commodity Return 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 YieldMax AMZN and Commodity Return into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YieldMax AMZN Option and Commodity Return Strategy, you can compare the effects of market volatilities on YieldMax AMZN and Commodity Return 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 YieldMax AMZN with a short position of Commodity Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax AMZN and Commodity Return.

Diversification Opportunities for YieldMax AMZN and Commodity Return

0.41

Correlation Coefficient

YieldMax AMZN  Commodity Return

Very weak diversification

The 3 months correlation between YieldMax and Commodity is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Commodity Return Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodity Return Strategy and YieldMax AMZN 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 YieldMax AMZN Option are associated (or correlated) with Commodity Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodity Return Strategy has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Commodity Return go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Commodity Return

Given the investment horizon of 90 days YieldMax AMZN Option is expected to generate 1.76 times more return on investment than Commodity Return. However, YieldMax AMZN is 1.76 times more volatile than Commodity Return Strategy. It trades about 0.11 of its potential returns per unit of risk. Commodity Return Strategy is currently generating about 0.01 per unit of risk. If you would invest  1,413  in YieldMax AMZN Option on May 16, 2025 and sell it today you would earn a total of  128.00  from holding YieldMax AMZN Option or generate 9.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

YieldMax AMZN Option  vs.  Commodity Return Strategy

YieldMax AMZN Option

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax AMZN Option are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, YieldMax AMZN may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Commodity Return Strategy

Risk-Adjusted Performance

Weakest

Over the last 90 days Commodity Return Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Commodity Return is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with YieldMax AMZN and Commodity Return

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

The idea behind YieldMax AMZN Option and Commodity Return Strategy 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.