Correlation Between YieldMax and RACWI ETF
Can any of the company-specific risk be diversified away by investing in both YieldMax and RACWI ETF 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 and RACWI ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax SP 500 and RACWI ETF, you can compare the effects of market volatilities on YieldMax and RACWI ETF 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 with a short position of RACWI ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax and RACWI ETF.
Diversification Opportunities for YieldMax and RACWI ETF
No risk reduction
The 3 months correlation between YieldMax and RACWI is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax SP 500 and RACWI ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RACWI ETF and YieldMax 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 SP 500 are associated (or correlated) with RACWI ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RACWI ETF has no effect on the direction of YieldMax i.e., YieldMax and RACWI ETF go up and down completely randomly.
Pair Corralation between YieldMax and RACWI ETF
Given the investment horizon of 90 days YieldMax SP 500 is expected to generate 0.97 times more return on investment than RACWI ETF. However, YieldMax SP 500 is 1.03 times less risky than RACWI ETF. It trades about 0.06 of its potential returns per unit of risk. RACWI ETF is currently generating about 0.04 per unit of risk. If you would invest 4,343 in YieldMax SP 500 on October 25, 2025 and sell it today you would earn a total of 99.00 from holding YieldMax SP 500 or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YieldMax SP 500 vs. RACWI ETF
Performance |
| Timeline |
| YieldMax SP 500 |
| RACWI ETF |
YieldMax and RACWI ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax and RACWI ETF
The main advantage of trading using opposite YieldMax and RACWI ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax position performs unexpectedly, RACWI ETF 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 RACWI ETF will offset losses from the drop in RACWI ETF's long position.| YieldMax vs. YieldMax Nasdaq 100 | YieldMax vs. Pacer Funds Trust | YieldMax vs. TrueShares Structured Outcome | YieldMax vs. TrueShares Structured Outcome |
| RACWI ETF vs. JPMorgan Fundamental Data | RACWI ETF vs. TrueShares Structured Outcome | RACWI ETF vs. YieldMax SP 500 | RACWI ETF vs. Pacer Funds Trust |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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