Correlation Between YieldMax Short and MDBX

Can any of the company-specific risk be diversified away by investing in both YieldMax Short and MDBX 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 Short and MDBX into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YieldMax Short NVDA and MDBX, you can compare the effects of market volatilities on YieldMax Short and MDBX 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 Short with a short position of MDBX. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax Short and MDBX.

Diversification Opportunities for YieldMax Short and MDBX

0.01

Correlation Coefficient

YieldMax Short  MDBX

Significant diversification

The 3 months correlation between YieldMax and MDBX is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax Short NVDA and MDBX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDBX and YieldMax Short 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 Short NVDA are associated (or correlated) with MDBX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MDBX has no effect on the direction of YieldMax Short i.e., YieldMax Short and MDBX go up and down completely randomly.

Pair Corralation between YieldMax Short and MDBX

Given the investment horizon of 90 days YieldMax Short NVDA is expected to under-perform the MDBX. But the etf apears to be less risky and, when comparing its historical volatility, YieldMax Short NVDA is 7.48 times less risky than MDBX. The etf trades about -0.26 of its potential returns per unit of risk. The MDBX is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,313  in MDBX on July 21, 2025 and sell it today you would earn a total of  2,065  from holding MDBX or generate 89.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	34.92%
Values	Daily Returns

YieldMax Short NVDA  vs.  MDBX

YieldMax Short NVDA

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax Short NVDA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, YieldMax Short is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

MDBX

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MDBX are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental drivers, MDBX showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YieldMax Short and MDBX

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

The idea behind YieldMax Short NVDA and MDBX 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.