Correlation Between YieldMax N and Tidal Trust
Can any of the company-specific risk be diversified away by investing in both YieldMax N and Tidal Trust 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 N and Tidal Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax N Option and Tidal Trust II, you can compare the effects of market volatilities on YieldMax N and Tidal Trust 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 N with a short position of Tidal Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax N and Tidal Trust.
Diversification Opportunities for YieldMax N and Tidal Trust
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YieldMax and Tidal is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II and YieldMax N 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 N Option are associated (or correlated) with Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of YieldMax N i.e., YieldMax N and Tidal Trust go up and down completely randomly.
Pair Corralation between YieldMax N and Tidal Trust
Given the investment horizon of 90 days YieldMax N Option is expected to generate 4.15 times more return on investment than Tidal Trust. However, YieldMax N is 4.15 times more volatile than Tidal Trust II. It trades about 0.34 of its potential returns per unit of risk. Tidal Trust II is currently generating about -0.1 per unit of risk. If you would invest 1,097 in YieldMax N Option on September 1, 2024 and sell it today you would earn a total of 610.00 from holding YieldMax N Option or generate 55.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YieldMax N Option vs. Tidal Trust II
Performance |
| Timeline |
| YieldMax N Option |
| Tidal Trust II |
YieldMax N and Tidal Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax N and Tidal Trust
The main advantage of trading using opposite YieldMax N and Tidal Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax N position performs unexpectedly, Tidal Trust 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 Tidal Trust will offset losses from the drop in Tidal Trust's long position.| YieldMax N vs. Tidal Trust II | YieldMax N vs. Tidal Trust II | YieldMax N vs. Direxion Daily META | YieldMax N vs. Direxion Daily META |
| Tidal Trust vs. Tidal Trust II | Tidal Trust vs. Direxion Daily META | Tidal Trust vs. Direxion Daily META | Tidal Trust vs. Tidal Trust II |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |