Correlation Between YieldMax N and Cosmos Health

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

Diversification Opportunities for YieldMax N and Cosmos Health

-0.63

Correlation Coefficient

YieldMax N  Cosmos Health

Excellent diversification

The 3 months correlation between YieldMax and Cosmos is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and Cosmos Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos Health 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 Cosmos Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos Health has no effect on the direction of YieldMax N i.e., YieldMax N and Cosmos Health go up and down completely randomly.

Pair Corralation between YieldMax N and Cosmos Health

Given the investment horizon of 90 days YieldMax N is expected to generate 43.8 times less return on investment than Cosmos Health. But when comparing it to its historical volatility, YieldMax N Option is 2.73 times less risky than Cosmos Health. It trades about 0.01 of its potential returns per unit of risk. Cosmos Health is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  45.00  in Cosmos Health on July 7, 2025 and sell it today you would earn a total of  63.00  from holding Cosmos Health or generate 140.0% return on investment over 90 days.

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

YieldMax N Option  vs.  Cosmos Health

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.

Cosmos Health

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cosmos Health are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Cosmos Health displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YieldMax N and Cosmos Health

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

The idea behind YieldMax N Option and Cosmos Health 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.