Correlation Between YieldMax Ultra and SPDR Gold

Can any of the company-specific risk be diversified away by investing in both YieldMax Ultra and SPDR Gold 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 SPDR Gold 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 SPDR Gold Mini, you can compare the effects of market volatilities on YieldMax Ultra and SPDR Gold 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 SPDR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax Ultra and SPDR Gold.

Diversification Opportunities for YieldMax Ultra and SPDR Gold

0.37

Correlation Coefficient

YieldMax Ultra  SPDR Gold

Weak diversification

The 3 months correlation between YieldMax and SPDR is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax Ultra Option and SPDR Gold Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Gold Mini 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 SPDR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Gold Mini has no effect on the direction of YieldMax Ultra i.e., YieldMax Ultra and SPDR Gold go up and down completely randomly.

Pair Corralation between YieldMax Ultra and SPDR Gold

Given the investment horizon of 90 days YieldMax Ultra Option is expected to under-perform the SPDR Gold. But the etf apears to be less risky and, when comparing its historical volatility, YieldMax Ultra Option is 1.26 times less risky than SPDR Gold. The etf trades about -0.01 of its potential returns per unit of risk. The SPDR Gold Mini is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  6,646  in SPDR Gold Mini on August 1, 2025 and sell it today you would earn a total of  1,317  from holding SPDR Gold Mini or generate 19.82% return on investment over 90 days.

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

YieldMax Ultra Option  vs.  SPDR Gold Mini

YieldMax Ultra Option

Risk-Adjusted Performance

Weak

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.

SPDR Gold Mini

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Gold Mini are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very sluggish fundamental indicators, SPDR Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YieldMax Ultra and SPDR Gold

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

The idea behind YieldMax Ultra Option and SPDR Gold Mini 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..