Correlation Between YieldMax N and Matrix

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

Diversification Opportunities for YieldMax N and Matrix

0.79

Correlation Coefficient

YieldMax N  Matrix

Poor diversification

The 3 months correlation between YieldMax and Matrix is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and Matrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matrix 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 Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matrix has no effect on the direction of YieldMax N i.e., YieldMax N and Matrix go up and down completely randomly.

Pair Corralation between YieldMax N and Matrix

Given the investment horizon of 90 days YieldMax N is expected to generate 1.68 times less return on investment than Matrix. In addition to that, YieldMax N is 2.01 times more volatile than Matrix. It trades about 0.09 of its total potential returns per unit of risk. Matrix is currently generating about 0.3 per unit of volatility. If you would invest  914,502  in Matrix on May 12, 2025 and sell it today you would earn a total of  300,498  from holding Matrix or generate 32.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	82.54%
Values	Daily Returns

YieldMax N Option  vs.  Matrix

YieldMax N Option

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax N Option are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, YieldMax N showed solid returns over the last few months and may actually be approaching a breakup point.

Matrix

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Matrix are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Matrix sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YieldMax N and Matrix

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

The idea behind YieldMax N Option and Matrix 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.