Correlation Between MicroSectors Gold and YieldMax MSTR

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

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

Diversification Opportunities for MicroSectors Gold and YieldMax MSTR

-0.4

Correlation Coefficient

MicroSectors Gold  YieldMax MSTR

Very good diversification

The 3 months correlation between MicroSectors and YieldMax is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding MicroSectors Gold Miners and YieldMax MSTR Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax MSTR Option and MicroSectors Gold 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 MicroSectors Gold Miners are associated (or correlated) with YieldMax MSTR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax MSTR Option has no effect on the direction of MicroSectors Gold i.e., MicroSectors Gold and YieldMax MSTR go up and down completely randomly.

Pair Corralation between MicroSectors Gold and YieldMax MSTR

Given the investment horizon of 90 days MicroSectors Gold Miners is expected to generate 2.43 times more return on investment than YieldMax MSTR. However, MicroSectors Gold is 2.43 times more volatile than YieldMax MSTR Option. It trades about 0.15 of its potential returns per unit of risk. YieldMax MSTR Option is currently generating about -0.21 per unit of risk. If you would invest  9,097  in MicroSectors Gold Miners on August 9, 2025 and sell it today you would earn a total of  6,173  from holding MicroSectors Gold Miners or generate 67.86% return on investment over 90 days.

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

MicroSectors Gold Miners  vs.  YieldMax MSTR Option

MicroSectors Gold Miners

Risk-Adjusted Performance

Fair

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

YieldMax MSTR Option

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax MSTR Option has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Pair Trading with MicroSectors Gold and YieldMax MSTR

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

The idea behind MicroSectors Gold Miners and YieldMax MSTR 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.