Correlation Between YieldMax AMZN and Utilities Portfolio

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

Diversification Opportunities for YieldMax AMZN and Utilities Portfolio

0.71

Correlation Coefficient

YieldMax AMZN  Utilities Portfolio

Poor diversification

The 3 months correlation between YieldMax and Utilities is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Utilities Portfolio Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utilities Portfolio 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 Utilities Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utilities Portfolio has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Utilities Portfolio go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Utilities Portfolio

Given the investment horizon of 90 days YieldMax AMZN is expected to generate 1.22 times less return on investment than Utilities Portfolio. In addition to that, YieldMax AMZN is 1.59 times more volatile than Utilities Portfolio Utilities. It trades about 0.08 of its total potential returns per unit of risk. Utilities Portfolio Utilities is currently generating about 0.16 per unit of volatility. If you would invest  12,101  in Utilities Portfolio Utilities on May 14, 2025 and sell it today you would earn a total of  1,054  from holding Utilities Portfolio Utilities or generate 8.71% return on investment over 90 days.

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

YieldMax AMZN Option  vs.  Utilities Portfolio Utilities

YieldMax AMZN Option

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax AMZN Option are ranked lower than 6 (%) 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.

Utilities Portfolio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Utilities Portfolio Utilities are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Utilities Portfolio may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with YieldMax AMZN and Utilities Portfolio

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

The idea behind YieldMax AMZN Option and Utilities Portfolio Utilities 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.