Correlation Between YieldMax MSTR and IShares MSCI

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

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

Diversification Opportunities for YieldMax MSTR and IShares MSCI

0.53

Correlation Coefficient

YieldMax MSTR  IShares MSCI

Very weak diversification

The 3 months correlation between YieldMax and IShares is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax MSTR Option and iShares MSCI Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Global and YieldMax MSTR 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 YieldMax MSTR Option are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Global has no effect on the direction of YieldMax MSTR i.e., YieldMax MSTR and IShares MSCI go up and down completely randomly.

Pair Corralation between YieldMax MSTR and IShares MSCI

Given the investment horizon of 90 days YieldMax MSTR Option is expected to under-perform the IShares MSCI. In addition to that, YieldMax MSTR is 3.89 times more volatile than iShares MSCI Global. It trades about -0.01 of its total potential returns per unit of risk. iShares MSCI Global is currently generating about 0.24 per unit of volatility. If you would invest  4,392  in iShares MSCI Global on May 5, 2025 and sell it today you would earn a total of  438.00  from holding iShares MSCI Global or generate 9.97% return on investment over 90 days.

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

YieldMax MSTR Option  vs.  iShares MSCI Global

YieldMax MSTR Option

Risk-Adjusted Performance

Very Weak

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 fairly strong basic indicators, YieldMax MSTR is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

iShares MSCI Global

Risk-Adjusted Performance

Solid

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

Pair Trading with YieldMax MSTR and IShares MSCI

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

The idea behind YieldMax MSTR Option and iShares MSCI Global 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.