Correlation Between YieldMax META and WisdomTree Managed

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Can any of the company-specific risk be diversified away by investing in both YieldMax META and WisdomTree Managed 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 META and WisdomTree Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax META Option and WisdomTree Managed Futures, you can compare the effects of market volatilities on YieldMax META and WisdomTree Managed 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 META with a short position of WisdomTree Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax META and WisdomTree Managed.

Diversification Opportunities for YieldMax META and WisdomTree Managed

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between YieldMax and WisdomTree is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax META Option and WisdomTree Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Managed and YieldMax META 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 META Option are associated (or correlated) with WisdomTree Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Managed has no effect on the direction of YieldMax META i.e., YieldMax META and WisdomTree Managed go up and down completely randomly.

Pair Corralation between YieldMax META and WisdomTree Managed

Considering the 90-day investment horizon YieldMax META Option is expected to under-perform the WisdomTree Managed. In addition to that, YieldMax META is 3.16 times more volatile than WisdomTree Managed Futures. It trades about -0.17 of its total potential returns per unit of risk. WisdomTree Managed Futures is currently generating about 0.1 per unit of volatility. If you would invest  3,767  in WisdomTree Managed Futures on October 25, 2025 and sell it today you would earn a total of  126.00  from holding WisdomTree Managed Futures or generate 3.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

YieldMax META Option  vs.  WisdomTree Managed Futures

 Performance 
       Timeline  
YieldMax META Option 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days YieldMax META Option has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's fundamental drivers remain fairly strong which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long term up-swing for the ETF investors.
WisdomTree Managed 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Managed Futures are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, WisdomTree Managed is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

YieldMax META and WisdomTree Managed Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with YieldMax META and WisdomTree Managed

The main advantage of trading using opposite YieldMax META and WisdomTree Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax META position performs unexpectedly, WisdomTree Managed 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 WisdomTree Managed will offset losses from the drop in WisdomTree Managed's long position.
The idea behind YieldMax META Option and WisdomTree Managed Futures pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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