Correlation Between YieldMax AMZN and ProShares UltraShort

Can any of the company-specific risk be diversified away by investing in both YieldMax AMZN and ProShares UltraShort 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 ProShares UltraShort 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 ProShares UltraShort SmallCap600, you can compare the effects of market volatilities on YieldMax AMZN and ProShares UltraShort 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 ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax AMZN and ProShares UltraShort.

Diversification Opportunities for YieldMax AMZN and ProShares UltraShort

-0.86

Correlation Coefficient

YieldMax AMZN  ProShares UltraShort

Pay attention - limited upside

The 3 months correlation between YieldMax and ProShares is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and ProShares UltraShort SmallCap6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort 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 ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and ProShares UltraShort go up and down completely randomly.

Pair Corralation between YieldMax AMZN and ProShares UltraShort

Given the investment horizon of 90 days YieldMax AMZN Option is expected to generate 0.59 times more return on investment than ProShares UltraShort. However, YieldMax AMZN Option is 1.71 times less risky than ProShares UltraShort. It trades about 0.13 of its potential returns per unit of risk. ProShares UltraShort SmallCap600 is currently generating about -0.09 per unit of risk. If you would invest  1,421  in YieldMax AMZN Option on May 17, 2025 and sell it today you would earn a total of  149.00  from holding YieldMax AMZN Option or generate 10.49% return on investment over 90 days.

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

YieldMax AMZN Option  vs.  ProShares UltraShort SmallCap6

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.

ProShares UltraShort

Risk-Adjusted Performance

Weakest

Over the last 90 days ProShares UltraShort SmallCap600 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Pair Trading with YieldMax AMZN and ProShares UltraShort

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

The idea behind YieldMax AMZN Option and ProShares UltraShort SmallCap600 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.