Correlation Between YieldMax HOOD and Dow Jones
Can any of the company-specific risk be diversified away by investing in both YieldMax HOOD and Dow Jones 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 HOOD and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax HOOD Option and Dow Jones Industrial, you can compare the effects of market volatilities on YieldMax HOOD and Dow Jones 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 HOOD with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax HOOD and Dow Jones.
Diversification Opportunities for YieldMax HOOD and Dow Jones
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YieldMax and Dow is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax HOOD Option and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and YieldMax HOOD 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 HOOD Option are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of YieldMax HOOD i.e., YieldMax HOOD and Dow Jones go up and down completely randomly.
Pair Corralation between YieldMax HOOD and Dow Jones
Given the investment horizon of 90 days YieldMax HOOD Option is expected to generate 5.12 times more return on investment than Dow Jones. However, YieldMax HOOD is 5.12 times more volatile than Dow Jones Industrial. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of risk. If you would invest 5,499 in YieldMax HOOD Option on August 18, 2025 and sell it today you would earn a total of 128.00 from holding YieldMax HOOD Option or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YieldMax HOOD Option vs. Dow Jones Industrial
Performance |
| Timeline |
YieldMax HOOD and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
YieldMax HOOD Option
Pair trading matchups for YieldMax HOOD
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with YieldMax HOOD and Dow Jones
The main advantage of trading using opposite YieldMax HOOD and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax HOOD position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| YieldMax HOOD vs. 2023 EFT Series | YieldMax HOOD vs. Aptus Large Cap | YieldMax HOOD vs. Calamos ETF Trust | YieldMax HOOD vs. FT Cboe Vest |
| Dow Jones vs. Sun Art Retail | Dow Jones vs. Barrick Mining | Dow Jones vs. Zhaojin Mining Industry | Dow Jones vs. Caseys General Stores |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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