Correlation Between YieldMax Ultra and T Rowe

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

Diversification Opportunities for YieldMax Ultra and T Rowe

0.07

Correlation Coefficient

YieldMax Ultra  T Rowe

Significant diversification

The 3 months correlation between YieldMax and PRZIX is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax Ultra Option and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of YieldMax Ultra i.e., YieldMax Ultra and T Rowe go up and down completely randomly.

Pair Corralation between YieldMax Ultra and T Rowe

Given the investment horizon of 90 days YieldMax Ultra Option is expected to generate 110.97 times more return on investment than T Rowe. However, YieldMax Ultra is 110.97 times more volatile than T Rowe Price. It trades about 0.12 of its potential returns per unit of risk. T Rowe Price is currently generating about 0.17 per unit of risk. If you would invest  459.00  in YieldMax Ultra Option on September 3, 2025 and sell it today you would earn a total of  3,548  from holding YieldMax Ultra Option or generate 772.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

YieldMax Ultra Option  vs.  T Rowe Price

YieldMax Ultra Option

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax Ultra Option are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, YieldMax Ultra showed solid returns over the last few months and may actually be approaching a breakup point.

T Rowe Price

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, T Rowe may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with YieldMax Ultra and T Rowe

The main advantage of trading using opposite YieldMax Ultra and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax Ultra position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind YieldMax Ultra Option and T Rowe Price 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.