Correlation Between YieldMax N and First Foundation

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

Diversification Opportunities for YieldMax N and First Foundation

0.56

Correlation Coefficient

YieldMax N  First Foundation

Very weak diversification

The 3 months correlation between YieldMax and First is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and First Foundation Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Foundation Fixed 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 First Foundation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Foundation Fixed has no effect on the direction of YieldMax N i.e., YieldMax N and First Foundation go up and down completely randomly.

Pair Corralation between YieldMax N and First Foundation

Given the investment horizon of 90 days YieldMax N Option is expected to generate 13.07 times more return on investment than First Foundation. However, YieldMax N is 13.07 times more volatile than First Foundation Fixed. It trades about 0.05 of its potential returns per unit of risk. First Foundation Fixed is currently generating about 0.16 per unit of risk. If you would invest  682.00  in YieldMax N Option on May 13, 2025 and sell it today you would earn a total of  44.00  from holding YieldMax N Option or generate 6.45% return on investment over 90 days.

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

YieldMax N Option  vs.  First Foundation Fixed

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 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, YieldMax N may actually be approaching a critical reversion point that can send shares even higher in September 2025.

First Foundation Fixed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Foundation Fixed are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, First Foundation is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with YieldMax N and First Foundation

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

The idea behind YieldMax N Option and First Foundation Fixed 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.