Correlation Between Teucrium Soybean and YieldMax AMZN
Can any of the company-specific risk be diversified away by investing in both Teucrium Soybean and YieldMax AMZN 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 Teucrium Soybean and YieldMax AMZN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teucrium Soybean and YieldMax AMZN Option, you can compare the effects of market volatilities on Teucrium Soybean and YieldMax AMZN 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 Teucrium Soybean with a short position of YieldMax AMZN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teucrium Soybean and YieldMax AMZN.
Diversification Opportunities for Teucrium Soybean and YieldMax AMZN
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teucrium and YieldMax is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Teucrium Soybean and YieldMax AMZN Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax AMZN Option and Teucrium Soybean 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 Teucrium Soybean are associated (or correlated) with YieldMax AMZN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax AMZN Option has no effect on the direction of Teucrium Soybean i.e., Teucrium Soybean and YieldMax AMZN go up and down completely randomly.
Pair Corralation between Teucrium Soybean and YieldMax AMZN
Given the investment horizon of 90 days Teucrium Soybean is expected to generate 1.09 times more return on investment than YieldMax AMZN. However, Teucrium Soybean is 1.09 times more volatile than YieldMax AMZN Option. It trades about 0.25 of its potential returns per unit of risk. YieldMax AMZN Option is currently generating about 0.06 per unit of risk. If you would invest 2,046 in Teucrium Soybean on October 20, 2024 and sell it today you would earn a total of 135.00 from holding Teucrium Soybean or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teucrium Soybean vs. YieldMax AMZN Option
Performance |
| Timeline |
| Teucrium Soybean |
| YieldMax AMZN Option |
Teucrium Soybean and YieldMax AMZN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teucrium Soybean and YieldMax AMZN
The main advantage of trading using opposite Teucrium Soybean and YieldMax AMZN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teucrium Soybean position performs unexpectedly, YieldMax AMZN 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 AMZN will offset losses from the drop in YieldMax AMZN's long position.| Teucrium Soybean vs. Teucrium Corn | Teucrium Soybean vs. Teucrium Wheat | Teucrium Soybean vs. Teucrium Sugar |
| YieldMax AMZN vs. Tidal Trust II | YieldMax AMZN vs. Tidal Trust II | YieldMax AMZN vs. Direxion Daily META | YieldMax AMZN vs. Direxion Daily META |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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