Correlation Between Direxion Daily and Sixt SE
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By analyzing existing cross correlation between Direxion Daily Mid and Sixt SE, you can compare the effects of market volatilities on Direxion Daily and Sixt SE 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 Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Sixt SE.
Diversification Opportunities for Direxion Daily and Sixt SE
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Direxion and Sixt is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of Direxion Daily i.e., Direxion Daily and Sixt SE go up and down completely randomly.
Pair Corralation between Direxion Daily and Sixt SE
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 1.78 times more return on investment than Sixt SE. However, Direxion Daily is 1.78 times more volatile than Sixt SE. It trades about 0.05 of its potential returns per unit of risk. Sixt SE is currently generating about 0.02 per unit of risk. If you would invest 3,830 in Direxion Daily Mid on September 3, 2024 and sell it today you would earn a total of 2,902 from holding Direxion Daily Mid or generate 75.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
Direxion Daily Mid vs. Sixt SE
Performance |
| Timeline |
| Direxion Daily Mid |
| Sixt SE |
Direxion Daily and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Sixt SE
The main advantage of trading using opposite Direxion Daily and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE'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 |
| Sixt SE vs. The Trade Desk | Sixt SE vs. FLOW TRADERS LTD | Sixt SE vs. Hyatt Hotels | Sixt SE vs. SALESFORCE INC CDR |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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