Correlation Between SPDR Kensho and Direxion
Can any of the company-specific risk be diversified away by investing in both SPDR Kensho and Direxion 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 SPDR Kensho and Direxion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Kensho Clean and Direxion, you can compare the effects of market volatilities on SPDR Kensho and Direxion 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 SPDR Kensho with a short position of Direxion. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Kensho and Direxion.
Diversification Opportunities for SPDR Kensho and Direxion
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between SPDR and Direxion is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Kensho Clean and Direxion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion and SPDR Kensho 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 SPDR Kensho Clean are associated (or correlated) with Direxion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion has no effect on the direction of SPDR Kensho i.e., SPDR Kensho and Direxion go up and down completely randomly.
Pair Corralation between SPDR Kensho and Direxion
If you would invest 6,281 in SPDR Kensho Clean on August 27, 2024 and sell it today you would earn a total of 68.00 from holding SPDR Kensho Clean or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.18% |
| Values | Daily Returns |
SPDR Kensho Clean vs. Direxion
Performance |
| Timeline |
| SPDR Kensho Clean |
| Direxion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Kensho and Direxion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Kensho and Direxion
The main advantage of trading using opposite SPDR Kensho and Direxion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Kensho position performs unexpectedly, Direxion 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 Direxion will offset losses from the drop in Direxion's long position.| SPDR Kensho vs. EA Series Trust | SPDR Kensho vs. EA Series Trust | SPDR Kensho vs. Rumble Inc | SPDR Kensho vs. EA Series Trust |
| Direxion vs. SPDR Kensho New | Direxion vs. The 3D Printing | Direxion vs. Invesco NASDAQ Next | Direxion vs. ARK Space Exploration |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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