Correlation Between YieldMax AMZN and CSPC Pharmaceutical

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

Diversification Opportunities for YieldMax AMZN and CSPC Pharmaceutical

0.28

Correlation Coefficient

YieldMax AMZN  CSPC Pharmaceutical

Modest diversification

The 3 months correlation between YieldMax and CSPC is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and CSPC Pharmaceutical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSPC Pharmaceutical 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 CSPC Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSPC Pharmaceutical has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and CSPC Pharmaceutical go up and down completely randomly.

Pair Corralation between YieldMax AMZN and CSPC Pharmaceutical

Given the investment horizon of 90 days YieldMax AMZN is expected to generate 53.0 times less return on investment than CSPC Pharmaceutical. But when comparing it to its historical volatility, YieldMax AMZN Option is 1.46 times less risky than CSPC Pharmaceutical. It trades about 0.01 of its potential returns per unit of risk. CSPC Pharmaceutical Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  105.00  in CSPC Pharmaceutical Group on July 3, 2025 and sell it today you would earn a total of  22.00  from holding CSPC Pharmaceutical Group or generate 20.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	83.87%
Values	Daily Returns

YieldMax AMZN Option  vs.  CSPC Pharmaceutical Group

YieldMax AMZN Option

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax AMZN Option has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, YieldMax AMZN is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

CSPC Pharmaceutical

Risk-Adjusted Performance

Good

Over the last 90 days CSPC Pharmaceutical Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak basic indicators, CSPC Pharmaceutical reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YieldMax AMZN and CSPC Pharmaceutical

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

The idea behind YieldMax AMZN Option and CSPC Pharmaceutical Group 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.