Correlation Between Direxion Daily and Grupa KTY
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Grupa KTY 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 Grupa KTY 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 Grupa KTY SA, you can compare the effects of market volatilities on Direxion Daily and Grupa KTY 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 Grupa KTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Grupa KTY.
Diversification Opportunities for Direxion Daily and Grupa KTY
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Direxion and Grupa is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Grupa KTY SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa KTY 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 Grupa KTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa KTY SA has no effect on the direction of Direxion Daily i.e., Direxion Daily and Grupa KTY go up and down completely randomly.
Pair Corralation between Direxion Daily and Grupa KTY
Given the investment horizon of 90 days Direxion Daily is expected to generate 1.91 times less return on investment than Grupa KTY. In addition to that, Direxion Daily is 1.21 times more volatile than Grupa KTY SA. It trades about 0.07 of its total potential returns per unit of risk. Grupa KTY SA is currently generating about 0.16 per unit of volatility. If you would invest 67,400 in Grupa KTY SA on September 7, 2024 and sell it today you would earn a total of 4,550 from holding Grupa KTY SA or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Direxion Daily Mid vs. Grupa KTY SA
Performance |
| Timeline |
| Direxion Daily Mid |
| Grupa KTY SA |
Direxion Daily and Grupa KTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Grupa KTY
The main advantage of trading using opposite Direxion Daily and Grupa KTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Grupa KTY 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 Grupa KTY will offset losses from the drop in Grupa KTY'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 |
| Grupa KTY vs. New Tech Venture | Grupa KTY vs. PLAYWAY SA | Grupa KTY vs. ING Bank lski | Grupa KTY vs. Santander Bank Polska |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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