Correlation Between IShares Global and YieldMax BABA

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

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

Diversification Opportunities for IShares Global and YieldMax BABA

0.0

Correlation Coefficient

IShares Global  YieldMax BABA

Pay attention - limited upside

The 3 months correlation between IShares and YieldMax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Comm and YieldMax BABA Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax BABA Option and IShares Global 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 iShares Global Comm are associated (or correlated) with YieldMax BABA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax BABA Option has no effect on the direction of IShares Global i.e., IShares Global and YieldMax BABA go up and down completely randomly.

Pair Corralation between IShares Global and YieldMax BABA

If you would invest  10,056  in iShares Global Comm on May 5, 2025 and sell it today you would earn a total of  1,167  from holding iShares Global Comm or generate 11.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

iShares Global Comm  vs.  YieldMax BABA Option

iShares Global Comm

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Global Comm are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, IShares Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

YieldMax BABA Option

Risk-Adjusted Performance

Very Weak

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

Pair Trading with IShares Global and YieldMax BABA

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

The idea behind iShares Global Comm and YieldMax BABA 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.