Correlation Between YieldMax Magnificent and Aluminum Futures
Can any of the company-specific risk be diversified away by investing in both YieldMax Magnificent and Aluminum Futures 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 Magnificent and Aluminum Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax Magnificent 7 and Aluminum Futures, you can compare the effects of market volatilities on YieldMax Magnificent and Aluminum Futures 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 Magnificent with a short position of Aluminum Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax Magnificent and Aluminum Futures.
Diversification Opportunities for YieldMax Magnificent and Aluminum Futures
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YieldMax and Aluminum is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax Magnificent 7 and Aluminum Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Futures and YieldMax Magnificent 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 Magnificent 7 are associated (or correlated) with Aluminum Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Futures has no effect on the direction of YieldMax Magnificent i.e., YieldMax Magnificent and Aluminum Futures go up and down completely randomly.
Pair Corralation between YieldMax Magnificent and Aluminum Futures
Given the investment horizon of 90 days YieldMax Magnificent 7 is expected to under-perform the Aluminum Futures. In addition to that, YieldMax Magnificent is 1.05 times more volatile than Aluminum Futures. It trades about -0.09 of its total potential returns per unit of risk. Aluminum Futures is currently generating about 0.35 per unit of volatility. If you would invest 247,725 in Aluminum Futures on October 22, 2024 and sell it today you would earn a total of 20,950 from holding Aluminum Futures or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
YieldMax Magnificent 7 vs. Aluminum Futures
Performance |
| Timeline |
| YieldMax Magnificent |
| Aluminum Futures |
YieldMax Magnificent and Aluminum Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax Magnificent and Aluminum Futures
The main advantage of trading using opposite YieldMax Magnificent and Aluminum Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax Magnificent position performs unexpectedly, Aluminum Futures 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 Aluminum Futures will offset losses from the drop in Aluminum Futures' long position.| YieldMax Magnificent vs. iShares Dividend and | YieldMax Magnificent vs. Martin Currie Sustainable | YieldMax Magnificent vs. VictoryShares THB Mid | YieldMax Magnificent vs. Mast Global Battery |
| Aluminum Futures vs. Cotton | Aluminum Futures vs. Corn Futures | Aluminum Futures vs. Micro E mini Russell | Aluminum Futures vs. Heating Oil |
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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