Correlation Between YieldMax AMZN and Core Bond

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

Diversification Opportunities for YieldMax AMZN and Core Bond

0.56

Correlation Coefficient

YieldMax AMZN  Core Bond

Very weak diversification

The 3 months correlation between YieldMax and Core is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Core Bond Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Bond Series 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 Core Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Bond Series has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Core Bond go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Core Bond

Given the investment horizon of 90 days YieldMax AMZN Option is expected to generate 3.66 times more return on investment than Core Bond. However, YieldMax AMZN is 3.66 times more volatile than Core Bond Series. It trades about 0.3 of its potential returns per unit of risk. Core Bond Series is currently generating about 0.0 per unit of risk. If you would invest  1,342  in YieldMax AMZN Option on April 30, 2025 and sell it today you would earn a total of  307.00  from holding YieldMax AMZN Option or generate 22.88% 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.  Core Bond Series

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 23 (%) 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.

Core Bond Series

Risk-Adjusted Performance

Very Weak

Over the last 90 days Core Bond Series has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Core Bond 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 Core Bond

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

The idea behind YieldMax AMZN Option and Core Bond Series 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.