Correlation Between YieldMax MSTR and 98389BAU4

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both YieldMax MSTR and 98389BAU4 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 MSTR and 98389BAU4 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax MSTR Option and XCEL ENERGY INC, you can compare the effects of market volatilities on YieldMax MSTR and 98389BAU4 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 MSTR with a short position of 98389BAU4. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax MSTR and 98389BAU4.

Diversification Opportunities for YieldMax MSTR and 98389BAU4

-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between YieldMax and 98389BAU4 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax MSTR Option and XCEL ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XCEL ENERGY INC and YieldMax MSTR 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 MSTR Option are associated (or correlated) with 98389BAU4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XCEL ENERGY INC has no effect on the direction of YieldMax MSTR i.e., YieldMax MSTR and 98389BAU4 go up and down completely randomly.

Pair Corralation between YieldMax MSTR and 98389BAU4

Given the investment horizon of 90 days YieldMax MSTR Option is expected to generate 11.91 times more return on investment than 98389BAU4. However, YieldMax MSTR is 11.91 times more volatile than XCEL ENERGY INC. It trades about 0.22 of its potential returns per unit of risk. XCEL ENERGY INC is currently generating about -0.21 per unit of risk. If you would invest  2,652  in YieldMax MSTR Option on August 28, 2024 and sell it today you would earn a total of  842.00  from holding YieldMax MSTR Option or generate 31.75% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy90.48%
ValuesDaily Returns

YieldMax MSTR Option  vs.  XCEL ENERGY INC

 Performance 
       Timeline  
YieldMax MSTR Option 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax MSTR Option are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, YieldMax MSTR showed solid returns over the last few months and may actually be approaching a breakup point.
XCEL ENERGY INC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days XCEL ENERGY INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 98389BAU4 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

YieldMax MSTR and 98389BAU4 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with YieldMax MSTR and 98389BAU4

The main advantage of trading using opposite YieldMax MSTR and 98389BAU4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax MSTR position performs unexpectedly, 98389BAU4 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 98389BAU4 will offset losses from the drop in 98389BAU4's long position.
YieldMax MSTR vs. Tidal Trust II
YieldMax MSTR vs. Tidal Trust II
YieldMax MSTR vs. First Trust Dorsey
YieldMax MSTR vs. Direxion Daily META
The idea behind YieldMax MSTR Option and XCEL ENERGY INC 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.
98389BAU4 vs. AEP TEX INC
98389BAU4 vs. US BANK NATIONAL
98389BAU4 vs. Dupont De Nemours
98389BAU4 vs. The Travelers Companies
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY