Correlation Between Direxion Daily and AwoX SA

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Can any of the company-specific risk be diversified away by investing in both Direxion Daily and AwoX SA 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 AwoX SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Direxion Daily Mid and AwoX SA, you can compare the effects of market volatilities on Direxion Daily and AwoX SA 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 AwoX SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and AwoX SA.

Diversification Opportunities for Direxion Daily and AwoX SA

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Direxion and AwoX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and AwoX SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AwoX SA 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 AwoX SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AwoX SA has no effect on the direction of Direxion Daily i.e., Direxion Daily and AwoX SA go up and down completely randomly.

Pair Corralation between Direxion Daily and AwoX SA

If you would invest (100.00) in AwoX SA on September 12, 2024 and sell it today you would earn a total of  100.00  from holding AwoX SA or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Direxion Daily Mid  vs.  AwoX SA

 Performance 
       Timeline  
Direxion Daily Mid 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Direxion Daily Mid are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting fundamental indicators, Direxion Daily unveiled solid returns over the last few months and may actually be approaching a breakup point.
AwoX SA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AwoX SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, AwoX SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Direxion Daily and AwoX SA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Direxion Daily and AwoX SA

The main advantage of trading using opposite Direxion Daily and AwoX SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, AwoX SA 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 AwoX SA will offset losses from the drop in AwoX SA's long position.
The idea behind Direxion Daily Mid and AwoX SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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