Correlation Between Direxion Daily and Garcia Reguera
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Garcia Reguera 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 Garcia Reguera 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 Garcia Reguera SA, you can compare the effects of market volatilities on Direxion Daily and Garcia Reguera 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 Garcia Reguera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Garcia Reguera.
Diversification Opportunities for Direxion Daily and Garcia Reguera
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Direxion and Garcia is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Garcia Reguera SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garcia Reguera 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 Garcia Reguera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garcia Reguera SA has no effect on the direction of Direxion Daily i.e., Direxion Daily and Garcia Reguera go up and down completely randomly.
Pair Corralation between Direxion Daily and Garcia Reguera
If you would invest 515,000 in Garcia Reguera SA on January 7, 2025 and sell it today you would earn a total of 0.00 from holding Garcia Reguera SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Direxion Daily Mid vs. Garcia Reguera SA
Performance |
| Timeline |
| Direxion Daily Mid |
| Garcia Reguera SA |
Direxion Daily and Garcia Reguera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Garcia Reguera
The main advantage of trading using opposite Direxion Daily and Garcia Reguera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Garcia Reguera 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 Garcia Reguera will offset losses from the drop in Garcia Reguera'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 |
| Garcia Reguera vs. Agrometal SAI | Garcia Reguera vs. Harmony Gold Mining | Garcia Reguera vs. Telecom Argentina | Garcia Reguera vs. Verizon Communications |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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