Correlation Between YieldMax AMZN and MATIC

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

Diversification Opportunities for YieldMax AMZN and MATIC

0.27

Correlation Coefficient

YieldMax AMZN  MATIC

Modest diversification

The 3 months correlation between YieldMax and MATIC is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and MATIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MATIC 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 MATIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MATIC has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and MATIC go up and down completely randomly.

Pair Corralation between YieldMax AMZN and MATIC

Given the investment horizon of 90 days YieldMax AMZN is expected to generate 1.04 times less return on investment than MATIC. But when comparing it to its historical volatility, YieldMax AMZN Option is 3.49 times less risky than MATIC. It trades about 0.13 of its potential returns per unit of risk. MATIC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  23.00  in MATIC on May 17, 2025 and sell it today you would earn a total of  1.00  from holding MATIC or generate 4.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

YieldMax AMZN Option  vs.  MATIC

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 9 (%) 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.

MATIC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MATIC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, MATIC may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with YieldMax AMZN and MATIC

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

The idea behind YieldMax AMZN Option and MATIC 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.