Correlation Between Direxion Daily and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Cohen Steers 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 Cohen Steers 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 Cohen Steers Realty, you can compare the effects of market volatilities on Direxion Daily and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Cohen Steers.
Diversification Opportunities for Direxion Daily and Cohen Steers
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Direxion and Cohen is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Cohen Steers Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Realty 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Realty has no effect on the direction of Direxion Daily i.e., Direxion Daily and Cohen Steers go up and down completely randomly.
Pair Corralation between Direxion Daily and Cohen Steers
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 2.85 times more return on investment than Cohen Steers. However, Direxion Daily is 2.85 times more volatile than Cohen Steers Realty. It trades about 0.05 of its potential returns per unit of risk. Cohen Steers Realty is currently generating about 0.04 per unit of risk. If you would invest 4,376 in Direxion Daily Mid on September 12, 2024 and sell it today you would earn a total of 1,892 from holding Direxion Daily Mid or generate 43.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Direxion Daily Mid vs. Cohen Steers Realty
Performance |
| Timeline |
| Direxion Daily Mid |
| Cohen Steers Realty |
Direxion Daily and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Cohen Steers
The main advantage of trading using opposite Direxion Daily and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' 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 |
| Cohen Steers vs. Ep Emerging Markets | Cohen Steers vs. Barings Emerging Markets | Cohen Steers vs. Kinetics Market Opportunities | Cohen Steers vs. Transamerica Emerging Markets |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges |