Correlation Between SmartETFs Dividend and YieldMax Ultra

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

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

Diversification Opportunities for SmartETFs Dividend and YieldMax Ultra

0.33

Correlation Coefficient

SmartETFs Dividend  YieldMax Ultra

Weak diversification

The 3 months correlation between SmartETFs and YieldMax is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding SmartETFs Dividend Builder and YieldMax Ultra Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax Ultra Option and SmartETFs Dividend 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 SmartETFs Dividend Builder are associated (or correlated) with YieldMax Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax Ultra Option has no effect on the direction of SmartETFs Dividend i.e., SmartETFs Dividend and YieldMax Ultra go up and down completely randomly.

Pair Corralation between SmartETFs Dividend and YieldMax Ultra

Given the investment horizon of 90 days SmartETFs Dividend is expected to generate 6.12 times less return on investment than YieldMax Ultra. But when comparing it to its historical volatility, SmartETFs Dividend Builder is 1.75 times less risky than YieldMax Ultra. It trades about 0.04 of its potential returns per unit of risk. YieldMax Ultra Option is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  510.00  in YieldMax Ultra Option on July 10, 2025 and sell it today you would earn a total of  40.00  from holding YieldMax Ultra Option or generate 7.84% return on investment over 90 days.

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

SmartETFs Dividend Builder  vs.  YieldMax Ultra Option

SmartETFs Dividend

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SmartETFs Dividend Builder are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, SmartETFs Dividend is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

YieldMax Ultra Option

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax Ultra Option are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, YieldMax Ultra may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with SmartETFs Dividend and YieldMax Ultra

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

The idea behind SmartETFs Dividend Builder and YieldMax Ultra Option 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.