Correlation Between YieldMax N and Virtual Protocol

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

Diversification Opportunities for YieldMax N and Virtual Protocol

0.77

Correlation Coefficient

YieldMax N  Virtual Protocol

Poor diversification

The 3 months correlation between YieldMax and Virtual is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and Virtual Protocol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtual Protocol 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 Virtual Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtual Protocol has no effect on the direction of YieldMax N i.e., YieldMax N and Virtual Protocol go up and down completely randomly.

Pair Corralation between YieldMax N and Virtual Protocol

Given the investment horizon of 90 days YieldMax N Option is expected to generate 0.51 times more return on investment than Virtual Protocol. However, YieldMax N Option is 1.97 times less risky than Virtual Protocol. It trades about -0.02 of its potential returns per unit of risk. Virtual Protocol is currently generating about -0.09 per unit of risk. If you would invest  806.00  in YieldMax N Option on July 10, 2025 and sell it today you would lose (58.00) from holding YieldMax N Option or give up 7.2% of portfolio value over 90 days.

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

YieldMax N Option  vs.  Virtual Protocol

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.

Virtual Protocol

Risk-Adjusted Performance

Weakest

Over the last 90 days Virtual Protocol has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain quite persistent which may send shares a bit higher in November 2025. The latest mess may also be a sign of long-standing up-swing for Virtual Protocol institutional investors.

Pair Trading with YieldMax N and Virtual Protocol

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

The idea behind YieldMax N Option and Virtual Protocol 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.