Correlation Between YieldMax AMZN and Voya Index

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

Diversification Opportunities for YieldMax AMZN and Voya Index

0.98

Correlation Coefficient

YieldMax AMZN  Voya Index

Almost no diversification

The 3 months correlation between YieldMax and Voya is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus 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 Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Plus has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Voya Index go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Voya Index

Given the investment horizon of 90 days YieldMax AMZN Option is expected to generate 1.82 times more return on investment than Voya Index. However, YieldMax AMZN is 1.82 times more volatile than Voya Index Plus. It trades about 0.14 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.19 per unit of risk. If you would invest  1,319  in YieldMax AMZN Option on May 4, 2025 and sell it today you would earn a total of  169.00  from holding YieldMax AMZN Option or generate 12.81% return on investment over 90 days.

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

YieldMax AMZN Option  vs.  Voya Index Plus

YieldMax AMZN Option

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax AMZN Option are ranked lower than 11 (%) 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.

Voya Index Plus

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Index Plus are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Voya Index may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with YieldMax AMZN and Voya Index

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

The idea behind YieldMax AMZN Option and Voya Index Plus 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.