Correlation Between Direxion Daily and Tianjin Yiyi
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By analyzing existing cross correlation between Direxion Daily Mid and Tianjin Yiyi Hygiene, you can compare the effects of market volatilities on Direxion Daily and Tianjin Yiyi 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 Tianjin Yiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Tianjin Yiyi.
Diversification Opportunities for Direxion Daily and Tianjin Yiyi
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Direxion and Tianjin is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Tianjin Yiyi Hygiene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Yiyi Hygiene 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 Mid are associated (or correlated) with Tianjin Yiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Yiyi Hygiene has no effect on the direction of Direxion Daily i.e., Direxion Daily and Tianjin Yiyi go up and down completely randomly.
Pair Corralation between Direxion Daily and Tianjin Yiyi
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 1.3 times more return on investment than Tianjin Yiyi. However, Direxion Daily is 1.3 times more volatile than Tianjin Yiyi Hygiene. It trades about 0.05 of its potential returns per unit of risk. Tianjin Yiyi Hygiene is currently generating about 0.01 per unit of risk. If you would invest 3,781 in Direxion Daily Mid on September 4, 2024 and sell it today you would earn a total of 2,951 from holding Direxion Daily Mid or generate 78.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.56% |
| Values | Daily Returns |
Direxion Daily Mid vs. Tianjin Yiyi Hygiene
Performance |
| Timeline |
| Direxion Daily Mid |
| Tianjin Yiyi Hygiene |
Direxion Daily and Tianjin Yiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Tianjin Yiyi
The main advantage of trading using opposite Direxion Daily and Tianjin Yiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Tianjin Yiyi 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 Tianjin Yiyi will offset losses from the drop in Tianjin Yiyi's long position.| Direxion Daily vs. Direxion Daily Retail | Direxion Daily vs. Direxion Daily Industrials | Direxion Daily vs. Direxion Daily Transportation | Direxion Daily vs. Direxion Daily FTSE |
| Tianjin Yiyi vs. Nuode Investment Co | Tianjin Yiyi vs. Xilinmen Furniture Co | Tianjin Yiyi vs. Vohringer Home Technology | Tianjin Yiyi vs. Zhangjiagang Freetrade Science |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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