BABO vs. BABA
BABO (YieldMax BABA Option Income Strategy ETF) is Derivative Income fund actively managed by YieldMax, while BABA (Alibaba Group Holding Limited) is a stock. Over the past year, BABO returned -9.47% vs -8.44% for BABA. With a 0.98 correlation, they move nearly in lockstep.
Performance
BABO vs. BABA - Performance Comparison
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Returns By Period
In the year-to-date period, BABO achieves a -26.68% return, which is significantly higher than BABA's -29.36% return.
BABO
- 1D
- -2.37%
- 1M
- -17.19%
- YTD
- -26.68%
- 6M
- -28.29%
- 1Y
- -9.47%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
BABA
- 1D
- -2.26%
- 1M
- -20.35%
- YTD
- -29.36%
- 6M
- -31.53%
- 1Y
- -8.44%
- 3Y*
- 8.69%
- 5Y*
- -12.97%
- 10Y*
- 3.64%
BABO vs. BABA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
BABO YieldMax BABA Option Income Strategy ETF | -26.68% | 46.84% | 0.65% |
BABA Alibaba Group Holding Limited | -29.36% | 75.80% | 8.94% |
Correlation
The correlation between BABO and BABA is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Aug 8, 2024 | 0.98 |
The correlation between BABO and BABA has been stable across timeframes, ranging from 0.98 to 0.98 - a consistent structural relationship.
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Return for Risk
BABO vs. BABA — Risk / Return Rank
BABO
BABA
BABO vs. BABA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for YieldMax BABA Option Income Strategy ETF (BABO) and Alibaba Group Holding Limited (BABA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| BABO | BABA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.08 | ||
| Sortino ratioReturn per unit of downside risk | -0.19 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.00 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | -0.25 | -0.19 | -0.06 |
| Martin ratioReturn relative to average drawdown | -0.58 | -0.41 | -0.17 |
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Drawdowns
BABO vs. BABA - Drawdown Comparison
The maximum BABO drawdown since its inception was -38.40%, smaller than the maximum BABA drawdown of -80.09%. Use the drawdown chart below to compare losses from any high point for BABO and BABA.
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Drawdown Indicators
| BABO | BABA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.40% | -80.09% | +41.69% |
Max Drawdown (1Y)Largest decline over 1 year | -38.40% | -45.31% | +6.91% |
Max Drawdown (3Y)Largest decline over 3 years | — | -45.31% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -72.48% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -80.09% | — |
Current DrawdownCurrent decline from peak | -38.40% | -65.62% | +27.22% |
Average DrawdownAverage peak-to-trough decline | -14.18% | -37.61% | +23.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.30% | 20.66% | -4.36% |
Volatility
BABO vs. BABA - Volatility Comparison
The current volatility for YieldMax BABA Option Income Strategy ETF (BABO) is 6.65%, while Alibaba Group Holding Limited (BABA) has a volatility of 8.04%. This indicates that BABO experiences smaller price fluctuations and is considered to be less risky than BABA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BABO | BABA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.65% | 8.04% | -1.39% |
Volatility (6M)Calculated over the trailing 6-month period | 24.44% | 29.29% | -4.85% |
Volatility (1Y)Calculated over the trailing 1-year period | 35.28% | 43.82% | -8.54% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 36.54% | 51.46% | -14.92% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 36.54% | 43.41% | -6.87% |
Dividends
BABO vs. BABA - Dividend Comparison
BABO's dividend yield for the trailing twelve months is around 102.95%, more than BABA's 1.02% yield.
| Position | TTM | 2025 | 2024 | 2023 |
|---|---|---|---|---|
BABA Alibaba Group Holding Limited | 1.02% | 1.36% | 1.96% | 1.29% |
BABO YieldMax BABA Option Income Strategy ETF | 102.95% | 85.50% | 20.65% | 0.00% |
Frequently Asked Questions
With a correlation of 0.98, BABO and BABA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
BABA has higher volatility (8.04%) compared to BABO (6.65%). In terms of maximum drawdown, BABO dropped -38.40% vs BABA's -80.09%.
BABA currently has the higher Sharpe Ratio (-0.19 vs -0.27), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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