Correlation Between YieldMax AMZN and Mattel
Can any of the company-specific risk be diversified away by investing in both YieldMax AMZN and Mattel 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 Mattel 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 Mattel Inc, you can compare the effects of market volatilities on YieldMax AMZN and Mattel 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 Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax AMZN and Mattel.
Diversification Opportunities for YieldMax AMZN and Mattel
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YieldMax and Mattel is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc 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 Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel Inc has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Mattel go up and down completely randomly.
Pair Corralation between YieldMax AMZN and Mattel
Given the investment horizon of 90 days YieldMax AMZN Option is expected to generate 0.38 times more return on investment than Mattel. However, YieldMax AMZN Option is 2.61 times less risky than Mattel. It trades about 0.29 of its potential returns per unit of risk. Mattel Inc is currently generating about 0.07 per unit of risk. If you would invest 1,360 in YieldMax AMZN Option on April 29, 2025 and sell it today you would earn a total of 302.00 from holding YieldMax AMZN Option or generate 22.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YieldMax AMZN Option vs. Mattel Inc
Performance |
| Timeline |
| YieldMax AMZN Option |
| Mattel Inc |
YieldMax AMZN and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax AMZN and Mattel
The main advantage of trading using opposite YieldMax AMZN and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax AMZN position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel'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. Direxion Daily META |
| Mattel vs. Fox Factory Holding | Mattel vs. FirstService Corp | Mattel vs. Frontdoor | Mattel vs. LCI Industries |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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