Correlation Between Direxion Daily and Xinjiang Zhongtai
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By analyzing existing cross correlation between Direxion Daily Mid and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on Direxion Daily and Xinjiang Zhongtai 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 Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Xinjiang Zhongtai.
Diversification Opportunities for Direxion Daily and Xinjiang Zhongtai
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Direxion and Xinjiang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai 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 Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of Direxion Daily i.e., Direxion Daily and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between Direxion Daily and Xinjiang Zhongtai
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 1.25 times more return on investment than Xinjiang Zhongtai. However, Direxion Daily is 1.25 times more volatile than Xinjiang Zhongtai Chemical. It trades about 0.09 of its potential returns per unit of risk. Xinjiang Zhongtai Chemical is currently generating about -0.04 per unit of risk. If you would invest 3,822 in Direxion Daily Mid on September 5, 2024 and sell it today you would earn a total of 2,798 from holding Direxion Daily Mid or generate 73.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.56% |
| Values | Daily Returns |
Direxion Daily Mid vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| Direxion Daily Mid |
| Xinjiang Zhongtai |
Direxion Daily and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Xinjiang Zhongtai
The main advantage of trading using opposite Direxion Daily and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Xinjiang Zhongtai 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 Xinjiang Zhongtai will offset losses from the drop in Xinjiang Zhongtai'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 |
| Xinjiang Zhongtai vs. Zijin Mining Group | Xinjiang Zhongtai vs. Wanhua Chemical Group | Xinjiang Zhongtai vs. Baoshan Iron Steel | Xinjiang Zhongtai vs. Shandong Gold Mining |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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