Correlation Between YieldMax N and Spectrum Advisors

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

Diversification Opportunities for YieldMax N and Spectrum Advisors

0.66

Correlation Coefficient

YieldMax N  Spectrum Advisors

Poor diversification

The 3 months correlation between YieldMax and Spectrum is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and Spectrum Advisors Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Advisors 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 Spectrum Advisors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Advisors has no effect on the direction of YieldMax N i.e., YieldMax N and Spectrum Advisors go up and down completely randomly.

Pair Corralation between YieldMax N and Spectrum Advisors

Given the investment horizon of 90 days YieldMax N Option is expected to generate 7.39 times more return on investment than Spectrum Advisors. However, YieldMax N is 7.39 times more volatile than Spectrum Advisors Preferred. It trades about 0.05 of its potential returns per unit of risk. Spectrum Advisors Preferred is currently generating about 0.15 per unit of risk. If you would invest  697.00  in YieldMax N Option on May 16, 2025 and sell it today you would earn a total of  54.00  from holding YieldMax N Option or generate 7.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

YieldMax N Option  vs.  Spectrum Advisors Preferred

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

Spectrum Advisors

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Spectrum Advisors Preferred are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Spectrum Advisors 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 Spectrum Advisors

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

The idea behind YieldMax N Option and Spectrum Advisors Preferred 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.