Correlation Between YieldMax AMZN and SenesTech

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

Diversification Opportunities for YieldMax AMZN and SenesTech

0.89

Correlation Coefficient

YieldMax AMZN  SenesTech

Very poor diversification

The 3 months correlation between YieldMax and SenesTech is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and SenesTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenesTech 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 SenesTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SenesTech has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and SenesTech go up and down completely randomly.

Pair Corralation between YieldMax AMZN and SenesTech

Given the investment horizon of 90 days YieldMax AMZN is expected to generate 4.56 times less return on investment than SenesTech. But when comparing it to its historical volatility, YieldMax AMZN Option is 5.97 times less risky than SenesTech. It trades about 0.3 of its potential returns per unit of risk. SenesTech is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  225.00  in SenesTech on April 30, 2025 and sell it today you would earn a total of  293.00  from holding SenesTech or generate 130.22% return on investment over 90 days.

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

YieldMax AMZN Option  vs.  SenesTech

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 23 (%) 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.

SenesTech

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SenesTech are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, SenesTech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YieldMax AMZN and SenesTech

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

The idea behind YieldMax AMZN Option and SenesTech 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.