Correlation Between Intel and YieldMax Short

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

By analyzing existing cross correlation between Intel and YieldMax Short N100, you can compare the effects of market volatilities on Intel and YieldMax Short 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 Intel with a short position of YieldMax Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and YieldMax Short.

Diversification Opportunities for Intel and YieldMax Short

-0.5

Correlation Coefficient

Intel  YieldMax Short

Very good diversification

The 3 months correlation between Intel and YieldMax is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intel and YieldMax Short N100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax Short N100 and Intel 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 Intel are associated (or correlated) with YieldMax Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax Short N100 has no effect on the direction of Intel i.e., Intel and YieldMax Short go up and down completely randomly.

Pair Corralation between Intel and YieldMax Short

Given the investment horizon of 90 days Intel is expected to generate 5.6 times more return on investment than YieldMax Short. However, Intel is 5.6 times more volatile than YieldMax Short N100. It trades about 0.1 of its potential returns per unit of risk. YieldMax Short N100 is currently generating about -0.14 per unit of risk. If you would invest  2,055  in Intel on May 27, 2025 and sell it today you would earn a total of  400.00  from holding Intel or generate 19.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Intel  vs.  YieldMax Short N100

Intel

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

YieldMax Short N100

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax Short N100 has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, YieldMax Short is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Intel and YieldMax Short

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

The idea behind Intel and YieldMax Short N100 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.