Correlation Between YieldMax N and Utilities Fund

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

Diversification Opportunities for YieldMax N and Utilities Fund

-0.53

Correlation Coefficient

YieldMax N  Utilities Fund

Excellent diversification

The 3 months correlation between YieldMax and Utilities is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and Utilities Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utilities Fund Class 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 Utilities Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utilities Fund Class has no effect on the direction of YieldMax N i.e., YieldMax N and Utilities Fund go up and down completely randomly.

Pair Corralation between YieldMax N and Utilities Fund

Given the investment horizon of 90 days YieldMax N is expected to generate 14.59 times less return on investment than Utilities Fund. In addition to that, YieldMax N is 4.17 times more volatile than Utilities Fund Class. It trades about 0.0 of its total potential returns per unit of risk. Utilities Fund Class is currently generating about 0.19 per unit of volatility. If you would invest  5,588  in Utilities Fund Class on July 5, 2025 and sell it today you would earn a total of  505.00  from holding Utilities Fund Class or generate 9.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

YieldMax N Option  vs.  Utilities Fund Class

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.

Utilities Fund Class

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Utilities Fund Class are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Utilities Fund may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with YieldMax N and Utilities Fund

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

The idea behind YieldMax N Option and Utilities Fund Class 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.

Check out your portfolio center.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.