Correlation Between YieldMax AMZN and Banking Fund
Can any of the company-specific risk be diversified away by investing in both YieldMax AMZN and Banking Fund 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 Banking Fund 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 Banking Fund Class, you can compare the effects of market volatilities on YieldMax AMZN and Banking Fund 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 Banking Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax AMZN and Banking Fund.
Diversification Opportunities for YieldMax AMZN and Banking Fund
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YieldMax and Banking is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Banking Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banking Fund Class 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 Banking Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banking Fund Class has no effect on the direction of YieldMax AMZN i.e., YieldMax AMZN and Banking Fund go up and down completely randomly.
Pair Corralation between YieldMax AMZN and Banking Fund
Given the investment horizon of 90 days YieldMax AMZN is expected to generate 2.45 times less return on investment than Banking Fund. In addition to that, YieldMax AMZN is 1.32 times more volatile than Banking Fund Class. It trades about 0.07 of its total potential returns per unit of risk. Banking Fund Class is currently generating about 0.22 per unit of volatility. If you would invest 8,938 in Banking Fund Class on June 2, 2025 and sell it today you would earn a total of 1,407 from holding Banking Fund Class or generate 15.74% 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. Banking Fund Class
Performance |
| Timeline |
| YieldMax AMZN Option |
| Banking Fund Class |
YieldMax AMZN and Banking Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax AMZN and Banking Fund
The main advantage of trading using opposite YieldMax AMZN and Banking Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax AMZN position performs unexpectedly, Banking Fund 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 Banking Fund will offset losses from the drop in Banking Fund's long position.| YieldMax AMZN vs. JPMorgan Equity Premium | YieldMax AMZN vs. Amplify CWP Enhanced | YieldMax AMZN vs. JPMorgan Nasdaq Equity | YieldMax AMZN vs. FT Cboe Vest |
| Banking Fund vs. Franklin Natural Resources | Banking Fund vs. Thrivent Natural Resources | Banking Fund vs. Energy Basic Materials | Banking Fund vs. Pimco Energy Tactical |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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