Correlation Between Direxion Daily and DNB Global
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By analyzing existing cross correlation between Direxion Daily Mid and DNB Global Indeks, you can compare the effects of market volatilities on Direxion Daily and DNB Global 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 DNB Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and DNB Global.
Diversification Opportunities for Direxion Daily and DNB Global
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Direxion and DNB is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and DNB Global Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB Global Indeks 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 DNB Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB Global Indeks has no effect on the direction of Direxion Daily i.e., Direxion Daily and DNB Global go up and down completely randomly.
Pair Corralation between Direxion Daily and DNB Global
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 3.75 times more return on investment than DNB Global. However, Direxion Daily is 3.75 times more volatile than DNB Global Indeks. It trades about 0.06 of its potential returns per unit of risk. DNB Global Indeks is currently generating about 0.11 per unit of risk. If you would invest 3,730 in Direxion Daily Mid on September 12, 2024 and sell it today you would earn a total of 2,538 from holding Direxion Daily Mid or generate 68.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
Direxion Daily Mid vs. DNB Global Indeks
Performance |
| Timeline |
| Direxion Daily Mid |
| DNB Global Indeks |
Direxion Daily and DNB Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and DNB Global
The main advantage of trading using opposite Direxion Daily and DNB Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, DNB Global 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 DNB Global will offset losses from the drop in DNB Global'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 |
| DNB Global vs. DNB Norge Selektiv | DNB Global vs. KLP AksjeNorge Indeks | DNB Global vs. Storebrand Global Solutions | DNB Global vs. Nordea 1 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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