Correlation Between YieldMax Ultra and Us Small

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

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

Diversification Opportunities for YieldMax Ultra and Us Small

0.15

Correlation Coefficient

YieldMax Ultra  Us Small

Average diversification

The 3 months correlation between YieldMax and DFSTX is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax Ultra Option and Us Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Small Cap and YieldMax Ultra 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 Ultra Option are associated (or correlated) with Us Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Small Cap has no effect on the direction of YieldMax Ultra i.e., YieldMax Ultra and Us Small go up and down completely randomly.

Pair Corralation between YieldMax Ultra and Us Small

Given the investment horizon of 90 days YieldMax Ultra Option is expected to under-perform the Us Small. In addition to that, YieldMax Ultra is 1.03 times more volatile than Us Small Cap. It trades about 0.0 of its total potential returns per unit of risk. Us Small Cap is currently generating about 0.09 per unit of volatility. If you would invest  4,904  in Us Small Cap on July 30, 2025 and sell it today you would earn a total of  294.00  from holding Us Small Cap or generate 6.0% return on investment over 90 days.

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

YieldMax Ultra Option  vs.  Us Small Cap

YieldMax Ultra Option

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax Ultra Option has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, YieldMax Ultra is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Us Small Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Us Small Cap are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Us Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with YieldMax Ultra and Us Small

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

The idea behind YieldMax Ultra Option and Us Small Cap 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.

Check out your portfolio center.

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.