Correlation Between Direxion Daily and Ampersand Sanlam
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By analyzing existing cross correlation between Direxion Daily Mid and Ampersand Sanlam Collective, you can compare the effects of market volatilities on Direxion Daily and Ampersand Sanlam 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 Ampersand Sanlam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Ampersand Sanlam.
Diversification Opportunities for Direxion Daily and Ampersand Sanlam
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Direxion and Ampersand is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Ampersand Sanlam Collective in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampersand Sanlam Col 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 Ampersand Sanlam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampersand Sanlam Col has no effect on the direction of Direxion Daily i.e., Direxion Daily and Ampersand Sanlam go up and down completely randomly.
Pair Corralation between Direxion Daily and Ampersand Sanlam
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 5.68 times more return on investment than Ampersand Sanlam. However, Direxion Daily is 5.68 times more volatile than Ampersand Sanlam Collective. It trades about 0.07 of its potential returns per unit of risk. Ampersand Sanlam Collective is currently generating about 0.07 per unit of risk. If you would invest 3,707 in Direxion Daily Mid on September 4, 2024 and sell it today you would earn a total of 3,025 from holding Direxion Daily Mid or generate 81.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.92% |
| Values | Daily Returns |
Direxion Daily Mid vs. Ampersand Sanlam Collective
Performance |
| Timeline |
| Direxion Daily Mid |
| Ampersand Sanlam Col |
Direxion Daily and Ampersand Sanlam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Ampersand Sanlam
The main advantage of trading using opposite Direxion Daily and Ampersand Sanlam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Ampersand Sanlam 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 Ampersand Sanlam will offset losses from the drop in Ampersand Sanlam'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 |
| Ampersand Sanlam vs. 4d Bci Moderate | Ampersand Sanlam vs. Coronation Global Optimum | Ampersand Sanlam vs. Discovery Aggressive Dynamic | Ampersand Sanlam vs. Bci Best Blend |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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