Correlation Between NEOS ETF and Kurv Yield

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

By analyzing existing cross correlation between NEOS ETF Trust and Kurv Yield Premium, you can compare the effects of market volatilities on NEOS ETF and Kurv Yield 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 NEOS ETF with a short position of Kurv Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEOS ETF and Kurv Yield.

Diversification Opportunities for NEOS ETF and Kurv Yield

-0.91

Correlation Coefficient

NEOS ETF  Kurv Yield

Pay attention - limited upside

The 3 months correlation between NEOS and Kurv is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding NEOS ETF Trust and Kurv Yield Premium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Yield Premium and NEOS ETF 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 NEOS ETF Trust are associated (or correlated) with Kurv Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Yield Premium has no effect on the direction of NEOS ETF i.e., NEOS ETF and Kurv Yield go up and down completely randomly.

Pair Corralation between NEOS ETF and Kurv Yield

Given the investment horizon of 90 days NEOS ETF Trust is expected to generate 3.28 times more return on investment than Kurv Yield. However, NEOS ETF is 3.28 times more volatile than Kurv Yield Premium. It trades about 0.13 of its potential returns per unit of risk. Kurv Yield Premium is currently generating about -0.14 per unit of risk. If you would invest  2,640  in NEOS ETF Trust on December 26, 2024 and sell it today you would earn a total of  2,358  from holding NEOS ETF Trust or generate 89.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	93.44%
Values	Daily Returns

NEOS ETF Trust  vs.  Kurv Yield Premium

NEOS ETF Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NEOS ETF Trust are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, NEOS ETF demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Kurv Yield Premium

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kurv Yield Premium has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Etf's essential indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with NEOS ETF and Kurv Yield

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

The idea behind NEOS ETF Trust and Kurv Yield Premium 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.