Correlation Between YieldMax N and Swisscom

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

Diversification Opportunities for YieldMax N and Swisscom

0.55

Correlation Coefficient

YieldMax N  Swisscom

Very weak diversification

The 3 months correlation between YieldMax and Swisscom is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and Swisscom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swisscom AG 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 Swisscom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swisscom AG has no effect on the direction of YieldMax N i.e., YieldMax N and Swisscom go up and down completely randomly.

Pair Corralation between YieldMax N and Swisscom

Given the investment horizon of 90 days YieldMax N Option is expected to generate 4.21 times more return on investment than Swisscom. However, YieldMax N is 4.21 times more volatile than Swisscom AG. It trades about 0.2 of its potential returns per unit of risk. Swisscom AG is currently generating about 0.06 per unit of risk. If you would invest  594.00  in YieldMax N Option on April 30, 2025 and sell it today you would earn a total of  262.00  from holding YieldMax N Option or generate 44.11% return on investment over 90 days.

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

YieldMax N Option  vs.  Swisscom AG

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.

Swisscom AG

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swisscom AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Swisscom is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with YieldMax N and Swisscom

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

The idea behind YieldMax N Option and Swisscom AG 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.