Correlation Between YieldMax AMZN and ProShares

Can any of the company-specific risk be diversified away by investing in both YieldMax AMZN and ProShares 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 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 SP 500, you can compare the effects of market volatilities on YieldMax AMZN and ProShares 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax AMZN and ProShares.

Diversification Opportunities for YieldMax AMZN and ProShares

0.24

Correlation Coefficient

YieldMax AMZN  ProShares

Modest diversification

The 3 months correlation between YieldMax and ProShares is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and ProShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP 500 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP 500 has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and ProShares go up and down completely randomly.

Pair Corralation between YieldMax AMZN and ProShares

Given the investment horizon of 90 days YieldMax AMZN Option is expected to under-perform the ProShares. In addition to that, YieldMax AMZN is 2.8 times more volatile than ProShares SP 500. It trades about 0.0 of its total potential returns per unit of risk. ProShares SP 500 is currently generating about 0.16 per unit of volatility. If you would invest  9,568  in ProShares SP 500 on July 6, 2025 and sell it today you would earn a total of  526.00  from holding ProShares SP 500 or generate 5.5% return on investment over 90 days.

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

YieldMax AMZN Option  vs.  ProShares SP 500

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.

ProShares SP 500

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares SP 500 are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, ProShares is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with YieldMax AMZN and ProShares

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

The idea behind YieldMax AMZN Option and ProShares SP 500 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.