Correlation Between YieldMax DIS and Bitwise Funds

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

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

Diversification Opportunities for YieldMax DIS and Bitwise Funds

-0.46

Correlation Coefficient

YieldMax DIS  Bitwise Funds

Very good diversification

The 3 months correlation between YieldMax and Bitwise is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax DIS Option and Bitwise Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Funds Trust and YieldMax DIS 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 DIS Option are associated (or correlated) with Bitwise Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Funds Trust has no effect on the direction of YieldMax DIS i.e., YieldMax DIS and Bitwise Funds go up and down completely randomly.

Pair Corralation between YieldMax DIS and Bitwise Funds

Given the investment horizon of 90 days YieldMax DIS Option is expected to under-perform the Bitwise Funds. But the etf apears to be less risky and, when comparing its historical volatility, YieldMax DIS Option is 1.92 times less risky than Bitwise Funds. The etf trades about -0.04 of its potential returns per unit of risk. The Bitwise Funds Trust is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,992  in Bitwise Funds Trust on August 2, 2025 and sell it today you would earn a total of  79.00  from holding Bitwise Funds Trust or generate 2.64% return on investment over 90 days.

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

YieldMax DIS Option  vs.  Bitwise Funds Trust

YieldMax DIS Option

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax DIS Option has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, YieldMax DIS is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Bitwise Funds Trust

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitwise Funds Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, Bitwise Funds is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with YieldMax DIS and Bitwise Funds

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

The idea behind YieldMax DIS Option and Bitwise Funds Trust 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.