Correlation Between WisdomTree CBOE and YieldMax
Can any of the company-specific risk be diversified away by investing in both WisdomTree CBOE and YieldMax 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 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 SP 500, you can compare the effects of market volatilities on WisdomTree CBOE and YieldMax 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree CBOE and YieldMax.
Diversification Opportunities for WisdomTree CBOE and YieldMax
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and YieldMax is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree CBOE SP and YieldMax SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax SP 500 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax SP 500 has no effect on the direction of WisdomTree CBOE i.e., WisdomTree CBOE and YieldMax go up and down completely randomly.
Pair Corralation between WisdomTree CBOE and YieldMax
Given the investment horizon of 90 days WisdomTree CBOE SP is expected to under-perform the YieldMax. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree CBOE SP is 1.03 times less risky than YieldMax. The etf trades about -0.14 of its potential returns per unit of risk. The YieldMax SP 500 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,052 in YieldMax SP 500 on September 28, 2025 and sell it today you would earn a total of 449.00 from holding YieldMax SP 500 or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 28.89% |
| Values | Daily Returns |
WisdomTree CBOE SP vs. YieldMax SP 500
Performance |
| Timeline |
| WisdomTree CBOE SP |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| YieldMax SP 500 |
WisdomTree CBOE and YieldMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree CBOE and YieldMax
The main advantage of trading using opposite WisdomTree CBOE and YieldMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree CBOE position performs unexpectedly, YieldMax 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 will offset losses from the drop in YieldMax's long position.| WisdomTree CBOE vs. WisdomTree High Yield | WisdomTree CBOE vs. Invesco Bloomberg Pricing | WisdomTree CBOE vs. Invesco SP MidCap | WisdomTree CBOE vs. Doubleline Etf Trust |
| YieldMax vs. YieldMax Nasdaq 100 | YieldMax vs. Pacer Funds Trust | YieldMax vs. TrueShares Structured Outcome | YieldMax vs. TrueShares Structured Outcome |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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