Correlation Between YieldMax AMZN and Calvert Developed

Can any of the company-specific risk be diversified away by investing in both YieldMax AMZN and Calvert Developed 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 Calvert Developed 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 Calvert Developed Market, you can compare the effects of market volatilities on YieldMax AMZN and Calvert Developed 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 Calvert Developed. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax AMZN and Calvert Developed.

Diversification Opportunities for YieldMax AMZN and Calvert Developed

0.48

Correlation Coefficient

YieldMax AMZN  Calvert Developed

Very weak diversification

The 3 months correlation between YieldMax and Calvert is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Calvert Developed Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Developed Market 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 Calvert Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Developed Market has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Calvert Developed go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Calvert Developed

Given the investment horizon of 90 days YieldMax AMZN Option is expected to generate 1.61 times more return on investment than Calvert Developed. However, YieldMax AMZN is 1.61 times more volatile than Calvert Developed Market. It trades about 0.26 of its potential returns per unit of risk. Calvert Developed Market is currently generating about 0.17 per unit of risk. If you would invest  1,388  in YieldMax AMZN Option on May 2, 2025 and sell it today you would earn a total of  258.00  from holding YieldMax AMZN Option or generate 18.59% 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.  Calvert Developed Market

YieldMax AMZN Option

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax AMZN Option are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, YieldMax AMZN showed solid returns over the last few months and may actually be approaching a breakup point.

Calvert Developed Market

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Developed Market are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calvert Developed may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with YieldMax AMZN and Calvert Developed

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

The idea behind YieldMax AMZN Option and Calvert Developed Market 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.