Correlation Between YieldMax AMZN and Defiance Daily

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

Diversification Opportunities for YieldMax AMZN and Defiance Daily

-0.72

Correlation Coefficient

YieldMax AMZN  Defiance Daily

Pay attention - limited upside

The 3 months correlation between YieldMax and Defiance is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Defiance Daily Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defiance Daily Target 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 Defiance Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defiance Daily Target has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Defiance Daily go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Defiance Daily

Given the investment horizon of 90 days YieldMax AMZN is expected to generate 21.6 times less return on investment than Defiance Daily. But when comparing it to its historical volatility, YieldMax AMZN Option is 10.01 times less risky than Defiance Daily. It trades about 0.11 of its potential returns per unit of risk. Defiance Daily Target is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  2,148  in Defiance Daily Target on May 15, 2025 and sell it today you would earn a total of  2,952  from holding Defiance Daily Target or generate 137.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	58.06%
Values	Daily Returns

YieldMax AMZN Option  vs.  Defiance Daily Target

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 8 (%) 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.

Defiance Daily Target

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Defiance Daily Target are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Defiance Daily showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YieldMax AMZN and Defiance Daily

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

The idea behind YieldMax AMZN Option and Defiance Daily Target 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 Global Correlations module to find global opportunities by holding instruments from different markets.