Correlation Between YieldMax AMZN and Technology Ultrasector

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

Diversification Opportunities for YieldMax AMZN and Technology Ultrasector

-0.1

Correlation Coefficient

YieldMax AMZN  Technology Ultrasector

Good diversification

The 3 months correlation between YieldMax and Technology is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Technology Ultrasector Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technology Ultrasector 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 Technology Ultrasector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technology Ultrasector has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Technology Ultrasector go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Technology Ultrasector

Given the investment horizon of 90 days YieldMax AMZN is expected to generate 16.93 times less return on investment than Technology Ultrasector. In addition to that, YieldMax AMZN is 1.15 times more volatile than Technology Ultrasector Profund. It trades about 0.01 of its total potential returns per unit of risk. Technology Ultrasector Profund is currently generating about 0.2 per unit of volatility. If you would invest  4,102  in Technology Ultrasector Profund on July 9, 2025 and sell it today you would earn a total of  684.00  from holding Technology Ultrasector Profund or generate 16.67% return on investment over 90 days.

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

YieldMax AMZN Option  vs.  Technology Ultrasector Profund

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.

Technology Ultrasector

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Technology Ultrasector Profund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Technology Ultrasector showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YieldMax AMZN and Technology Ultrasector

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

The idea behind YieldMax AMZN Option and Technology Ultrasector 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .