Correlation Between YieldMax Target and WisdomTree Inflation
Can any of the company-specific risk be diversified away by investing in both YieldMax Target and WisdomTree Inflation 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 Target and WisdomTree Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax Target 12 and WisdomTree Inflation Plus, you can compare the effects of market volatilities on YieldMax Target and WisdomTree Inflation 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 Target with a short position of WisdomTree Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax Target and WisdomTree Inflation.
Diversification Opportunities for YieldMax Target and WisdomTree Inflation
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YieldMax and WisdomTree is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax Target 12 and WisdomTree Inflation Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Inflation Plus and YieldMax Target 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 Target 12 are associated (or correlated) with WisdomTree Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Inflation Plus has no effect on the direction of YieldMax Target i.e., YieldMax Target and WisdomTree Inflation go up and down completely randomly.
Pair Corralation between YieldMax Target and WisdomTree Inflation
Given the investment horizon of 90 days YieldMax Target 12 is expected to generate 0.55 times more return on investment than WisdomTree Inflation. However, YieldMax Target 12 is 1.81 times less risky than WisdomTree Inflation. It trades about 0.2 of its potential returns per unit of risk. WisdomTree Inflation Plus is currently generating about 0.06 per unit of risk. If you would invest 4,752 in YieldMax Target 12 on November 16, 2025 and sell it today you would earn a total of 397.00 from holding YieldMax Target 12 or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YieldMax Target 12 vs. WisdomTree Inflation Plus
Performance |
| Timeline |
| YieldMax Target 12 |
| WisdomTree Inflation Plus |
YieldMax Target and WisdomTree Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax Target and WisdomTree Inflation
The main advantage of trading using opposite YieldMax Target and WisdomTree Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax Target position performs unexpectedly, WisdomTree Inflation 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 Inflation will offset losses from the drop in WisdomTree Inflation's long position.| YieldMax Target vs. AllianzIM Large Cap | YieldMax Target vs. Invesco Bloomberg MVP | YieldMax Target vs. ABLD | YieldMax Target vs. Aptus Drawdown Managed |
| WisdomTree Inflation vs. WisdomTree MidCap Quality | WisdomTree Inflation vs. Litman Gregory Funds | WisdomTree Inflation vs. Tidal Trust II | WisdomTree Inflation 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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