Correlation Between YieldMax AMZN and IShares Morningstar

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

Diversification Opportunities for YieldMax AMZN and IShares Morningstar

0.93

Correlation Coefficient

YieldMax AMZN  IShares Morningstar

Almost no diversification

The 3 months correlation between YieldMax and IShares is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and iShares Morningstar Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Morningstar 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 IShares Morningstar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Morningstar has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and IShares Morningstar go up and down completely randomly.

Pair Corralation between YieldMax AMZN and IShares Morningstar

Given the investment horizon of 90 days YieldMax AMZN Option is expected to generate 1.23 times more return on investment than IShares Morningstar. However, YieldMax AMZN is 1.23 times more volatile than iShares Morningstar Small Cap. It trades about 0.14 of its potential returns per unit of risk. iShares Morningstar Small Cap is currently generating about 0.1 per unit of risk. If you would invest  1,319  in YieldMax AMZN Option on May 5, 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.  iShares Morningstar Small Cap

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.

iShares Morningstar

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Morningstar Small Cap are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, IShares Morningstar may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with YieldMax AMZN and IShares Morningstar

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

The idea behind YieldMax AMZN Option and iShares Morningstar Small Cap 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.