Correlation Between Direxion Daily and Janus
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Janus 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 Janus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Direxion Daily SP and Janus, you can compare the effects of market volatilities on Direxion Daily and Janus 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 Janus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Janus.
Diversification Opportunities for Direxion Daily and Janus
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Direxion and Janus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily SP and Janus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus 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 SP are associated (or correlated) with Janus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus has no effect on the direction of Direxion Daily i.e., Direxion Daily and Janus go up and down completely randomly.
Pair Corralation between Direxion Daily and Janus
If you would invest 2,801 in Direxion Daily SP on September 4, 2024 and sell it today you would earn a total of 500.00 from holding Direxion Daily SP or generate 17.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Direxion Daily SP vs. Janus
Performance |
| Timeline |
| Direxion Daily SP |
| Janus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Direxion Daily and Janus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Janus
The main advantage of trading using opposite Direxion Daily and Janus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Janus 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 Janus will offset losses from the drop in Janus' long position.| Direxion Daily vs. ProShares Ultra SP500 | Direxion Daily vs. ProShares Ultra QQQ | Direxion Daily vs. MicroSectors FANG Index | Direxion Daily vs. ProShares Ultra Financials |
| Janus vs. ProShares UltraShort Bloomberg | Janus vs. United States Oil | Janus vs. Direxion Daily Energy | Janus vs. Direxion Daily SP |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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