Correlation Between YieldMax AMZN and CSL

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

Diversification Opportunities for YieldMax AMZN and CSL

0.59

Correlation Coefficient

YieldMax AMZN  CSL

Very weak diversification

The 3 months correlation between YieldMax and CSL is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and CSL go up and down completely randomly.

Pair Corralation between YieldMax AMZN and CSL

Given the investment horizon of 90 days YieldMax AMZN is expected to generate 1.78 times less return on investment than CSL. In addition to that, YieldMax AMZN is 1.0 times more volatile than CSL. It trades about 0.09 of its total potential returns per unit of risk. CSL is currently generating about 0.16 per unit of volatility. If you would invest  7,584  in CSL on May 10, 2025 and sell it today you would earn a total of  1,061  from holding CSL or generate 13.99% return on investment over 90 days.

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

YieldMax AMZN Option  vs.  CSL

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 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, YieldMax AMZN may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CSL

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CSL are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile essential indicators, CSL showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YieldMax AMZN and CSL

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

The idea behind YieldMax AMZN Option and CSL 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.