Correlation Between GraniteShares and YieldMax AMZN

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

By analyzing existing cross correlation between GraniteShares 2x Long and YieldMax AMZN Option, you can compare the effects of market volatilities on GraniteShares and YieldMax AMZN 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 GraniteShares with a short position of YieldMax AMZN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and YieldMax AMZN.

Diversification Opportunities for GraniteShares and YieldMax AMZN

0.95

Correlation Coefficient

GraniteShares  YieldMax AMZN

Almost no diversification

The 3 months correlation between GraniteShares and YieldMax is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 2x Long and YieldMax AMZN Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax AMZN Option and GraniteShares 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 GraniteShares 2x Long are associated (or correlated) with YieldMax AMZN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax AMZN Option has no effect on the direction of GraniteShares i.e., GraniteShares and YieldMax AMZN go up and down completely randomly.

Pair Corralation between GraniteShares and YieldMax AMZN

Given the investment horizon of 90 days GraniteShares 2x Long is expected to generate 2.96 times more return on investment than YieldMax AMZN. However, GraniteShares is 2.96 times more volatile than YieldMax AMZN Option. It trades about 0.23 of its potential returns per unit of risk. YieldMax AMZN Option is currently generating about 0.14 per unit of risk. If you would invest  1,500  in GraniteShares 2x Long on May 4, 2025 and sell it today you would earn a total of  1,122  from holding GraniteShares 2x Long or generate 74.8% return on investment over 90 days.

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

GraniteShares 2x Long  vs.  YieldMax AMZN Option

GraniteShares 2x Long

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares 2x Long are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent essential indicators, GraniteShares disclosed solid returns over the last few months and may actually be approaching a breakup point.

YieldMax AMZN Option

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax AMZN Option are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, YieldMax AMZN showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GraniteShares and YieldMax AMZN

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

The idea behind GraniteShares 2x Long and YieldMax AMZN 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.