Correlation Between YieldMax AMZN and VictoryShares Small

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

Diversification Opportunities for YieldMax AMZN and VictoryShares Small

0.03

Correlation Coefficient

YieldMax AMZN  VictoryShares Small

Significant diversification

The 3 months correlation between YieldMax and VictoryShares is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and VictoryShares Small Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VictoryShares Small Mid 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 VictoryShares Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VictoryShares Small Mid has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and VictoryShares Small go up and down completely randomly.

Pair Corralation between YieldMax AMZN and VictoryShares Small

Given the investment horizon of 90 days YieldMax AMZN Option is expected to under-perform the VictoryShares Small. In addition to that, YieldMax AMZN is 1.69 times more volatile than VictoryShares Small Mid. It trades about -0.03 of its total potential returns per unit of risk. VictoryShares Small Mid is currently generating about 0.11 per unit of volatility. If you would invest  8,503  in VictoryShares Small Mid on July 23, 2025 and sell it today you would earn a total of  527.00  from holding VictoryShares Small Mid or generate 6.2% return on investment over 90 days.

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

YieldMax AMZN Option  vs.  VictoryShares Small Mid

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 current stock price disturbance, may contribute to short-term losses for the investors.

VictoryShares Small Mid

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in VictoryShares Small Mid are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, VictoryShares Small is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with YieldMax AMZN and VictoryShares Small

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

The idea behind YieldMax AMZN Option and VictoryShares Small Mid 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.