Correlation Between YieldMax AMZN and Small Cap

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

Diversification Opportunities for YieldMax AMZN and Small Cap

0.0

Correlation Coefficient

YieldMax AMZN  Small Cap

Pay attention - limited upside

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

Pair Corralation between YieldMax AMZN and Small Cap

If you would invest  1,368  in YieldMax AMZN Option on May 1, 2025 and sell it today you would earn a total of  283.00  from holding YieldMax AMZN Option or generate 20.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

YieldMax AMZN Option  vs.  Small Cap Value Profund

YieldMax AMZN Option

Risk-Adjusted Performance

Solid

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 weak basic indicators, YieldMax AMZN showed solid returns over the last few months and may actually be approaching a breakup point.

Small Cap Value

Risk-Adjusted Performance

Good

Over the last 90 days Small Cap Value Profund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Small Cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with YieldMax AMZN and Small Cap

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

The idea behind YieldMax AMZN Option and Small Cap Value Profund 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.