Correlation Between YieldMax AMZN and IShares NASDAQ
Can any of the company-specific risk be diversified away by investing in both YieldMax AMZN and IShares NASDAQ 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 AMZN and IShares NASDAQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax AMZN Option and iShares NASDAQ 100, you can compare the effects of market volatilities on YieldMax AMZN and IShares NASDAQ 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 AMZN with a short position of IShares NASDAQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax AMZN and IShares NASDAQ.
Diversification Opportunities for YieldMax AMZN and IShares NASDAQ
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YieldMax and IShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and iShares NASDAQ 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares NASDAQ 100 and YieldMax AMZN 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 AMZN Option are associated (or correlated) with IShares NASDAQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares NASDAQ 100 has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and IShares NASDAQ go up and down completely randomly.
Pair Corralation between YieldMax AMZN and IShares NASDAQ
Given the investment horizon of 90 days YieldMax AMZN Option is expected to generate 1.93 times more return on investment than IShares NASDAQ. However, YieldMax AMZN is 1.93 times more volatile than iShares NASDAQ 100. It trades about 0.12 of its potential returns per unit of risk. iShares NASDAQ 100 is currently generating about 0.22 per unit of risk. If you would invest 1,419 in YieldMax AMZN Option on May 28, 2025 and sell it today you would earn a total of 141.00 from holding YieldMax AMZN Option or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YieldMax AMZN Option vs. iShares NASDAQ 100
Performance |
| Timeline |
| YieldMax AMZN Option |
| iShares NASDAQ 100 |
YieldMax AMZN and IShares NASDAQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax AMZN and IShares NASDAQ
The main advantage of trading using opposite YieldMax AMZN and IShares NASDAQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax AMZN position performs unexpectedly, IShares NASDAQ 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 IShares NASDAQ will offset losses from the drop in IShares NASDAQ's long position.| YieldMax AMZN vs. Tidal Trust II | YieldMax AMZN vs. Tidal Trust II | YieldMax AMZN vs. T Rex 2X Long | YieldMax AMZN vs. Defiance Daily Target |
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against IShares NASDAQ as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. IShares NASDAQ's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, IShares NASDAQ's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to iShares NASDAQ 100.
Check out your portfolio center.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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |