Correlation Between YieldMax Short and Strategy Shares

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

By analyzing existing cross correlation between YieldMax Short N100 and Strategy Shares, you can compare the effects of market volatilities on YieldMax Short and Strategy Shares 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 Short with a short position of Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax Short and Strategy Shares.

Diversification Opportunities for YieldMax Short and Strategy Shares

-0.68

Correlation Coefficient

YieldMax Short  Strategy Shares

Excellent diversification

The 3 months correlation between YieldMax and Strategy is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax Short N100 and Strategy Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares and YieldMax Short 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 Short N100 are associated (or correlated) with Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares has no effect on the direction of YieldMax Short i.e., YieldMax Short and Strategy Shares go up and down completely randomly.

Pair Corralation between YieldMax Short and Strategy Shares

Given the investment horizon of 90 days YieldMax Short N100 is expected to under-perform the Strategy Shares. In addition to that, YieldMax Short is 4.86 times more volatile than Strategy Shares. It trades about -0.13 of its total potential returns per unit of risk. Strategy Shares is currently generating about 0.3 per unit of volatility. If you would invest  2,524  in Strategy Shares on July 1, 2025 and sell it today you would earn a total of  57.00  from holding Strategy Shares or generate 2.26% return on investment over 90 days.

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

YieldMax Short N100  vs.  Strategy Shares

YieldMax Short N100

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax Short N100 has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, YieldMax Short is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Strategy Shares

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Strategy Shares are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Strategy Shares 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 Short and Strategy Shares

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

The idea behind YieldMax Short N100 and Strategy Shares 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 CEOs Directory module to screen CEOs from public companies around the world.