Correlation Between YieldMax AMZN and Sims Metal

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

Diversification Opportunities for YieldMax AMZN and Sims Metal

0.0

Correlation Coefficient

YieldMax AMZN  Sims Metal

Pay attention - limited upside

The 3 months correlation between YieldMax and Sims is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Sims Metal Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sims Metal Management 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 Sims Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sims Metal Management has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Sims Metal go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Sims Metal

If you would invest  1,422  in YieldMax AMZN Option on July 1, 2025 and sell it today you would earn a total of  14.00  from holding YieldMax AMZN Option or generate 0.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

YieldMax AMZN Option  vs.  Sims Metal Management

YieldMax AMZN Option

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax AMZN Option are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, YieldMax AMZN is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Sims Metal Management

Risk-Adjusted Performance

Weakest

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

Pair Trading with YieldMax AMZN and Sims Metal

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

The idea behind YieldMax AMZN Option and Sims Metal Management 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..