Correlation Between YieldMax N and Vanguard Short

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

Diversification Opportunities for YieldMax N and Vanguard Short

-0.79

Correlation Coefficient

YieldMax N  Vanguard Short

Pay attention - limited upside

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

Pair Corralation between YieldMax N and Vanguard Short

Given the investment horizon of 90 days YieldMax N is expected to generate 2.54 times less return on investment than Vanguard Short. In addition to that, YieldMax N is 21.67 times more volatile than Vanguard Short Term Bond. It trades about 0.0 of its total potential returns per unit of risk. Vanguard Short Term Bond is currently generating about 0.17 per unit of volatility. If you would invest  1,018  in Vanguard Short Term Bond on July 5, 2025 and sell it today you would earn a total of  16.00  from holding Vanguard Short Term Bond or generate 1.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

YieldMax N Option  vs.  Vanguard Short Term Bond

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 recent stock price disturbance, may contribute to short-term losses for the investors.

Vanguard Short Term

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Short Term Bond are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Vanguard Short 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 Vanguard Short

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

The idea behind YieldMax N Option and Vanguard Short Term Bond 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.