Correlation Between OFFICIAL TRUMP and YFII

Can any of the company-specific risk be diversified away by investing in both OFFICIAL TRUMP and YFII 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 OFFICIAL TRUMP and YFII into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OFFICIAL TRUMP and YFII, you can compare the effects of market volatilities on OFFICIAL TRUMP and YFII 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 OFFICIAL TRUMP with a short position of YFII. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICIAL TRUMP and YFII.

Diversification Opportunities for OFFICIAL TRUMP and YFII

0.86

Correlation Coefficient

OFFICIAL TRUMP  YFII

Very poor diversification

The 3 months correlation between OFFICIAL and YFII is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding OFFICIAL TRUMP and YFII in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YFII and OFFICIAL TRUMP 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 OFFICIAL TRUMP are associated (or correlated) with YFII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YFII has no effect on the direction of OFFICIAL TRUMP i.e., OFFICIAL TRUMP and YFII go up and down completely randomly.

Pair Corralation between OFFICIAL TRUMP and YFII

Assuming the 90 days trading horizon OFFICIAL TRUMP is expected to generate 1.12 times more return on investment than YFII. However, OFFICIAL TRUMP is 1.12 times more volatile than YFII. It trades about 0.05 of its potential returns per unit of risk. YFII is currently generating about -0.14 per unit of risk. If you would invest  922.00  in OFFICIAL TRUMP on April 21, 2025 and sell it today you would earn a total of  92.00  from holding OFFICIAL TRUMP or generate 9.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

OFFICIAL TRUMP  vs.  YFII

OFFICIAL TRUMP

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in OFFICIAL TRUMP are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, OFFICIAL TRUMP exhibited solid returns over the last few months and may actually be approaching a breakup point.

YFII

Risk-Adjusted Performance

Very Weak

Over the last 90 days YFII has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for YFII shareholders.

Pair Trading with OFFICIAL TRUMP and YFII

The main advantage of trading using opposite OFFICIAL TRUMP and YFII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICIAL TRUMP position performs unexpectedly, YFII 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 YFII will offset losses from the drop in YFII's long position.

The idea behind OFFICIAL TRUMP and YFII 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.