Correlation Between YieldMax AMZN and Inverse Nasdaq-100

Can any of the company-specific risk be diversified away by investing in both YieldMax AMZN and Inverse Nasdaq-100 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 Inverse Nasdaq-100 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 Inverse Nasdaq 100 Strategy, you can compare the effects of market volatilities on YieldMax AMZN and Inverse Nasdaq-100 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 Inverse Nasdaq-100. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax AMZN and Inverse Nasdaq-100.

Diversification Opportunities for YieldMax AMZN and Inverse Nasdaq-100

0.17

Correlation Coefficient

YieldMax AMZN  Inverse Nasdaq-100

Average diversification

The 3 months correlation between YieldMax and Inverse is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Inverse Nasdaq 100 Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse Nasdaq 100 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 Inverse Nasdaq-100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse Nasdaq 100 has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Inverse Nasdaq-100 go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Inverse Nasdaq-100

Given the investment horizon of 90 days YieldMax AMZN Option is expected to generate 1.85 times more return on investment than Inverse Nasdaq-100. However, YieldMax AMZN is 1.85 times more volatile than Inverse Nasdaq 100 Strategy. It trades about -0.03 of its potential returns per unit of risk. Inverse Nasdaq 100 Strategy is currently generating about -0.08 per unit of risk. If you would invest  1,464  in YieldMax AMZN Option on July 15, 2025 and sell it today you would lose (51.00) from holding YieldMax AMZN Option or give up 3.48% of portfolio value over 90 days.

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

YieldMax AMZN Option  vs.  Inverse Nasdaq 100 Strategy

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.

Inverse Nasdaq 100

Risk-Adjusted Performance

Weakest

Over the last 90 days Inverse Nasdaq 100 Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Inverse Nasdaq-100 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with YieldMax AMZN and Inverse Nasdaq-100

The main advantage of trading using opposite YieldMax AMZN and Inverse Nasdaq-100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax AMZN position performs unexpectedly, Inverse Nasdaq-100 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 Inverse Nasdaq-100 will offset losses from the drop in Inverse Nasdaq-100's long position.

The idea behind YieldMax AMZN Option and Inverse Nasdaq 100 Strategy 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..