Correlation Between YieldMax AMZN and Pfizer

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

Diversification Opportunities for YieldMax AMZN and Pfizer

-0.05

Correlation Coefficient

YieldMax AMZN  Pfizer

Good diversification

The 3 months correlation between YieldMax and Pfizer is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc 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 Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Pfizer go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Pfizer

Given the investment horizon of 90 days YieldMax AMZN is expected to generate 6.63 times less return on investment than Pfizer. But when comparing it to its historical volatility, YieldMax AMZN Option is 1.18 times less risky than Pfizer. It trades about 0.01 of its potential returns per unit of risk. Pfizer Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,495  in Pfizer Inc on July 3, 2025 and sell it today you would earn a total of  53.00  from holding Pfizer Inc or generate 2.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

YieldMax AMZN Option  vs.  Pfizer Inc

YieldMax AMZN Option

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax AMZN Option has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, YieldMax AMZN is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pfizer Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Pfizer is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with YieldMax AMZN and Pfizer

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

The idea behind YieldMax AMZN Option and Pfizer Inc 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.