Correlation Between YieldMax Ultra and Clearbridge Appreciation

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

Diversification Opportunities for YieldMax Ultra and Clearbridge Appreciation

0.65

Correlation Coefficient

YieldMax Ultra  Clearbridge Appreciation

Poor diversification

The 3 months correlation between YieldMax and Clearbridge is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax Ultra Option and Clearbridge Appreciation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Appreciation 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 Clearbridge Appreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Appreciation has no effect on the direction of YieldMax Ultra i.e., YieldMax Ultra and Clearbridge Appreciation go up and down completely randomly.

Pair Corralation between YieldMax Ultra and Clearbridge Appreciation

Given the investment horizon of 90 days YieldMax Ultra Option is expected to generate 1.95 times more return on investment than Clearbridge Appreciation. However, YieldMax Ultra is 1.95 times more volatile than Clearbridge Appreciation Fund. It trades about 0.17 of its potential returns per unit of risk. Clearbridge Appreciation Fund is currently generating about 0.23 per unit of risk. If you would invest  399.00  in YieldMax Ultra Option on July 24, 2025 and sell it today you would earn a total of  114.00  from holding YieldMax Ultra Option or generate 28.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.2%
Values	Daily Returns

YieldMax Ultra Option  vs.  Clearbridge Appreciation Fund

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.

Clearbridge Appreciation

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Clearbridge Appreciation Fund are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Clearbridge Appreciation is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with YieldMax Ultra and Clearbridge Appreciation

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

The idea behind YieldMax Ultra Option and Clearbridge Appreciation Fund 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.