Correlation Between Vanguard High and YieldMax MSTR

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

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

Diversification Opportunities for Vanguard High and YieldMax MSTR

0.58

Correlation Coefficient

Vanguard High  YieldMax MSTR

Very weak diversification

The 3 months correlation between Vanguard and YieldMax is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard High Dividend and YieldMax MSTR Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax MSTR Option and Vanguard High 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 Vanguard High Dividend are associated (or correlated) with YieldMax MSTR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax MSTR Option has no effect on the direction of Vanguard High i.e., Vanguard High and YieldMax MSTR go up and down completely randomly.

Pair Corralation between Vanguard High and YieldMax MSTR

Considering the 90-day investment horizon Vanguard High Dividend is expected to generate 0.28 times more return on investment than YieldMax MSTR. However, Vanguard High Dividend is 3.53 times less risky than YieldMax MSTR. It trades about 0.15 of its potential returns per unit of risk. YieldMax MSTR Option is currently generating about -0.01 per unit of risk. If you would invest  12,449  in Vanguard High Dividend on May 5, 2025 and sell it today you would earn a total of  841.00  from holding Vanguard High Dividend or generate 6.76% return on investment over 90 days.

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

Vanguard High Dividend  vs.  YieldMax MSTR Option

Vanguard High Dividend

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard High Dividend are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Vanguard High may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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.

Pair Trading with Vanguard High and YieldMax MSTR

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

The idea behind Vanguard High Dividend and YieldMax MSTR Option 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.