Correlation Between YieldMax N and Alight

Can any of the company-specific risk be diversified away by investing in both YieldMax N and Alight 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 N and Alight into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YieldMax N Option and Alight Inc, you can compare the effects of market volatilities on YieldMax N and Alight 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 N with a short position of Alight. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax N and Alight.

Diversification Opportunities for YieldMax N and Alight

0.8

Correlation Coefficient

YieldMax N  Alight

Very poor diversification

The 3 months correlation between YieldMax and Alight is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and Alight Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alight Inc and YieldMax N 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 N Option are associated (or correlated) with Alight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alight Inc has no effect on the direction of YieldMax N i.e., YieldMax N and Alight go up and down completely randomly.

Pair Corralation between YieldMax N and Alight

Given the investment horizon of 90 days YieldMax N Option is expected to generate 0.97 times more return on investment than Alight. However, YieldMax N Option is 1.03 times less risky than Alight. It trades about 0.28 of its potential returns per unit of risk. Alight Inc is currently generating about -0.28 per unit of risk. If you would invest  642.00  in YieldMax N Option on July 5, 2025 and sell it today you would earn a total of  112.00  from holding YieldMax N Option or generate 17.45% return on investment over 90 days.

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

YieldMax N Option  vs.  Alight Inc

YieldMax N Option

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax N Option has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, YieldMax N is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Alight Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Alight Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with YieldMax N and Alight

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

The idea behind YieldMax N Option and Alight Inc 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.