Correlation Between WisdomTree CBOE and YieldMax DKNG

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

Diversification Opportunities for WisdomTree CBOE and YieldMax DKNG

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between WisdomTree and YieldMax is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree CBOE SP and YieldMax DKNG Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax DKNG Option and WisdomTree CBOE 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 WisdomTree CBOE SP are associated (or correlated) with YieldMax DKNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax DKNG Option has no effect on the direction of WisdomTree CBOE i.e., WisdomTree CBOE and YieldMax DKNG go up and down completely randomly.

Pair Corralation between WisdomTree CBOE and YieldMax DKNG

Given the investment horizon of 90 days WisdomTree CBOE SP is expected to generate 0.22 times more return on investment than YieldMax DKNG. However, WisdomTree CBOE SP is 4.55 times less risky than YieldMax DKNG. It trades about 0.1 of its potential returns per unit of risk. YieldMax DKNG Option is currently generating about -0.14 per unit of risk. If you would invest  3,269  in WisdomTree CBOE SP on November 19, 2025 and sell it today you would earn a total of  94.00  from holding WisdomTree CBOE SP or generate 2.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy78.69%
ValuesDaily Returns

WisdomTree CBOE SP  vs.  YieldMax DKNG Option

 Performance 
       Timeline  
WisdomTree CBOE SP 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Over the last 90 days WisdomTree CBOE SP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, WisdomTree CBOE is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
YieldMax DKNG Option 

Risk-Adjusted Performance

Weakest

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

WisdomTree CBOE and YieldMax DKNG Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree CBOE and YieldMax DKNG

The main advantage of trading using opposite WisdomTree CBOE and YieldMax DKNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree CBOE position performs unexpectedly, YieldMax DKNG 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 YieldMax DKNG will offset losses from the drop in YieldMax DKNG's long position.
The idea behind WisdomTree CBOE SP and YieldMax DKNG Option 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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