Correlation Between YieldMax N and Matson

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

Diversification Opportunities for YieldMax N and Matson

0.14

Correlation Coefficient

YieldMax N  Matson

Average diversification

The 3 months correlation between YieldMax and Matson is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and Matson Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matson Inc 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 Matson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matson Inc has no effect on the direction of YieldMax N i.e., YieldMax N and Matson go up and down completely randomly.

Pair Corralation between YieldMax N and Matson

Given the investment horizon of 90 days YieldMax N Option is expected to generate 0.88 times more return on investment than Matson. However, YieldMax N Option is 1.13 times less risky than Matson. It trades about 0.21 of its potential returns per unit of risk. Matson Inc is currently generating about 0.01 per unit of risk. If you would invest  591.00  in YieldMax N Option on May 3, 2025 and sell it today you would earn a total of  280.00  from holding YieldMax N Option or generate 47.38% 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.  Matson Inc

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 16 (%) 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.

Matson Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Matson Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Matson 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 Matson

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

The idea behind YieldMax N Option and Matson Inc 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.