Correlation Between Direxion Daily and BankInvest Danske
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By analyzing existing cross correlation between Direxion Daily Mid and BankInvest Danske, you can compare the effects of market volatilities on Direxion Daily and BankInvest Danske 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 BankInvest Danske. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and BankInvest Danske.
Diversification Opportunities for Direxion Daily and BankInvest Danske
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Direxion and BankInvest is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and BankInvest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Danske 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 BankInvest Danske. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Danske has no effect on the direction of Direxion Daily i.e., Direxion Daily and BankInvest Danske go up and down completely randomly.
Pair Corralation between Direxion Daily and BankInvest Danske
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 3.86 times more return on investment than BankInvest Danske. However, Direxion Daily is 3.86 times more volatile than BankInvest Danske. It trades about 0.17 of its potential returns per unit of risk. BankInvest Danske is currently generating about 0.05 per unit of risk. If you would invest 4,499 in Direxion Daily Mid on September 5, 2024 and sell it today you would earn a total of 2,121 from holding Direxion Daily Mid or generate 47.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.7% |
| Values | Daily Returns |
Direxion Daily Mid vs. BankInvest Danske
Performance |
| Timeline |
| Direxion Daily Mid |
| BankInvest Danske |
Direxion Daily and BankInvest Danske Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and BankInvest Danske
The main advantage of trading using opposite Direxion Daily and BankInvest Danske positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, BankInvest Danske 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 BankInvest Danske will offset losses from the drop in BankInvest Danske'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 |
| BankInvest Danske vs. Jyske Invest Nye | BankInvest Danske vs. Jyske Invest Korte | BankInvest Danske vs. Jyske Invest Nye | BankInvest Danske vs. Jyske Invest Virksomhedsobligationer |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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