Correlation Between YieldMax N and Exchange Traded

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

Diversification Opportunities for YieldMax N and Exchange Traded

-0.92

Correlation Coefficient

YieldMax N  Exchange Traded

Pay attention - limited upside

The 3 months correlation between YieldMax and Exchange is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts 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 Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of YieldMax N i.e., YieldMax N and Exchange Traded go up and down completely randomly.

Pair Corralation between YieldMax N and Exchange Traded

Given the investment horizon of 90 days YieldMax N Option is expected to generate 21.58 times more return on investment than Exchange Traded. However, YieldMax N is 21.58 times more volatile than Exchange Traded Concepts. It trades about 0.05 of its potential returns per unit of risk. Exchange Traded Concepts is currently generating about 0.14 per unit of risk. If you would invest  697.00  in YieldMax N Option on May 16, 2025 and sell it today you would earn a total of  54.00  from holding YieldMax N Option or generate 7.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	59.68%
Values	Daily Returns

YieldMax N Option  vs.  Exchange Traded Concepts

YieldMax N Option

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax N Option are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, YieldMax N may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Exchange Traded Concepts

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exchange Traded Concepts are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Exchange Traded is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with YieldMax N and Exchange Traded

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

The idea behind YieldMax N Option and Exchange Traded Concepts 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.