Correlation Between YieldMax N and IndexIQ

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

Diversification Opportunities for YieldMax N and IndexIQ

0.0

Correlation Coefficient

YieldMax N  IndexIQ

Pay attention - limited upside

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

Pair Corralation between YieldMax N and IndexIQ

If you would invest  683.00  in YieldMax N Option on May 27, 2025 and sell it today you would earn a total of  22.00  from holding YieldMax N Option or generate 3.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

YieldMax N Option  vs.  IndexIQ

YieldMax N Option

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax N Option are ranked lower than 2 (%) 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.

IndexIQ

Risk-Adjusted Performance

Weakest

Over the last 90 days IndexIQ has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, IndexIQ is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with YieldMax N and IndexIQ

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

The idea behind YieldMax N Option and IndexIQ 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.