Correlation Between Direxion Daily and Fluent
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Fluent 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 Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Direxion Daily FTSE and Fluent Inc, you can compare the effects of market volatilities on Direxion Daily and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Fluent.
Diversification Opportunities for Direxion Daily and Fluent
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Direxion and Fluent is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily FTSE and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 FTSE are associated (or correlated) with Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Direxion Daily i.e., Direxion Daily and Fluent go up and down completely randomly.
Pair Corralation between Direxion Daily and Fluent
Given the investment horizon of 90 days Direxion Daily FTSE is expected to under-perform the Fluent. But the etf apears to be less risky and, when comparing its historical volatility, Direxion Daily FTSE is 1.77 times less risky than Fluent. The etf trades about -0.31 of its potential returns per unit of risk. The Fluent Inc is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 303.00 in Fluent Inc on August 29, 2024 and sell it today you would lose (23.00) from holding Fluent Inc or give up 7.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Direxion Daily FTSE vs. Fluent Inc
Performance |
| Timeline |
| Direxion Daily FTSE |
| Fluent Inc |
Direxion Daily and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Fluent
The main advantage of trading using opposite Direxion Daily and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| Direxion Daily vs. ABIVAX Socit Anonyme | Direxion Daily vs. Morningstar Unconstrained Allocation | Direxion Daily vs. SPACE | Direxion Daily vs. Knife River |
| Fluent vs. Capital Income Builder | Fluent vs. Direxion Daily FTSE | Fluent vs. Dodge Global Stock | Fluent vs. Collegium Pharmaceutical |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |