Correlation Between YieldMax N and BitFuFu

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

Diversification Opportunities for YieldMax N and BitFuFu

0.16

Correlation Coefficient

YieldMax N  BitFuFu

Average diversification

The 3 months correlation between YieldMax and BitFuFu is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and BitFuFu Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFuFu Class A 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 BitFuFu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitFuFu Class A has no effect on the direction of YieldMax N i.e., YieldMax N and BitFuFu go up and down completely randomly.

Pair Corralation between YieldMax N and BitFuFu

Given the investment horizon of 90 days YieldMax N is expected to generate 4.52 times less return on investment than BitFuFu. But when comparing it to its historical volatility, YieldMax N Option is 1.76 times less risky than BitFuFu. It trades about 0.06 of its potential returns per unit of risk. BitFuFu Class A is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  323.00  in BitFuFu Class A on April 30, 2025 and sell it today you would earn a total of  33.00  from holding BitFuFu Class A or generate 10.22% return on investment over 90 days.

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

YieldMax N Option  vs.  BitFuFu Class A

YieldMax N Option

Risk-Adjusted Performance

Solid

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

BitFuFu Class A

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BitFuFu Class A are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical and fundamental indicators, BitFuFu may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with YieldMax N and BitFuFu

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

The idea behind YieldMax N Option and BitFuFu Class A 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.