Correlation Between YieldMax AMZN and Stocksplus Fund

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

Diversification Opportunities for YieldMax AMZN and Stocksplus Fund

0.97

Correlation Coefficient

YieldMax AMZN  Stocksplus Fund

Almost no diversification

The 3 months correlation between YieldMax and Stocksplus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Stocksplus Fund C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Fund C 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 Stocksplus Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Fund C has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Stocksplus Fund go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Stocksplus Fund

Given the investment horizon of 90 days YieldMax AMZN Option is expected to generate 1.6 times more return on investment than Stocksplus Fund. However, YieldMax AMZN is 1.6 times more volatile than Stocksplus Fund C. It trades about 0.2 of its potential returns per unit of risk. Stocksplus Fund C is currently generating about 0.27 per unit of risk. If you would invest  1,388  in YieldMax AMZN Option on May 2, 2025 and sell it today you would earn a total of  210.00  from holding YieldMax AMZN Option or generate 15.13% return on investment over 90 days.

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

YieldMax AMZN Option  vs.  Stocksplus Fund C

YieldMax AMZN Option

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax AMZN Option are ranked lower than 15 (%) 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.

Stocksplus Fund C

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Stocksplus Fund C are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Stocksplus Fund may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with YieldMax AMZN and Stocksplus Fund

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

The idea behind YieldMax AMZN Option and Stocksplus Fund C 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.