Correlation Between Direxion Daily and Psagot Index
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By analyzing existing cross correlation between Direxion Daily Mid and Psagot Index Funds, you can compare the effects of market volatilities on Direxion Daily and Psagot Index 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 Psagot Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Psagot Index.
Diversification Opportunities for Direxion Daily and Psagot Index
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Direxion and Psagot is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Psagot Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psagot Index Funds 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 Psagot Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psagot Index Funds has no effect on the direction of Direxion Daily i.e., Direxion Daily and Psagot Index go up and down completely randomly.
Pair Corralation between Direxion Daily and Psagot Index
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 11.49 times more return on investment than Psagot Index. However, Direxion Daily is 11.49 times more volatile than Psagot Index Funds. It trades about 0.06 of its potential returns per unit of risk. Psagot Index Funds is currently generating about 0.1 per unit of risk. If you would invest 3,515 in Direxion Daily Mid on September 5, 2024 and sell it today you would earn a total of 3,105 from holding Direxion Daily Mid or generate 88.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 77.17% |
| Values | Daily Returns |
Direxion Daily Mid vs. Psagot Index Funds
Performance |
| Timeline |
| Direxion Daily Mid |
| Psagot Index Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
Direxion Daily and Psagot Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Psagot Index
The main advantage of trading using opposite Direxion Daily and Psagot Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Psagot Index 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 Psagot Index will offset losses from the drop in Psagot Index'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 |
| Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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