Correlation Between Direxion Daily and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Angel Oak 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 Direxion Daily and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Direxion Daily Regional and Angel Oak Funds, you can compare the effects of market volatilities on Direxion Daily and Angel Oak 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 Direxion Daily with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Angel Oak.
Diversification Opportunities for Direxion Daily and Angel Oak
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Direxion and Angel is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Regional and Angel Oak Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Funds and Direxion Daily 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 Direxion Daily Regional are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Funds has no effect on the direction of Direxion Daily i.e., Direxion Daily and Angel Oak go up and down completely randomly.
Pair Corralation between Direxion Daily and Angel Oak
Given the investment horizon of 90 days Direxion Daily Regional is expected to generate 20.66 times more return on investment than Angel Oak. However, Direxion Daily is 20.66 times more volatile than Angel Oak Funds. It trades about 0.15 of its potential returns per unit of risk. Angel Oak Funds is currently generating about 0.12 per unit of risk. If you would invest 6,209 in Direxion Daily Regional on September 3, 2024 and sell it today you would earn a total of 9,435 from holding Direxion Daily Regional or generate 151.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Direxion Daily Regional vs. Angel Oak Funds
Performance |
| Timeline |
| Direxion Daily Regional |
| Angel Oak Funds |
Direxion Daily and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Angel Oak
The main advantage of trading using opposite Direxion Daily and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Direxion Daily vs. ProShares Ultra SP500 | Direxion Daily vs. Direxion Daily SP500 | Direxion Daily vs. ProShares Ultra QQQ | Direxion Daily vs. Direxion Daily SP |
| Angel Oak vs. Valued Advisers Trust | Angel Oak vs. Columbia Diversified Fixed | Angel Oak vs. Principal Exchange Traded Funds | Angel Oak vs. Doubleline Etf Trust |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |