Correlation Between Direxion Daily and Siit Us
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Siit Us 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 Siit Us 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 Siit Managed Volatility, you can compare the effects of market volatilities on Direxion Daily and Siit Us 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 Siit Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Siit Us.
Diversification Opportunities for Direxion Daily and Siit Us
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Direxion and Siit is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Siit Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Managed Volatility 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 Siit Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Managed Volatility has no effect on the direction of Direxion Daily i.e., Direxion Daily and Siit Us go up and down completely randomly.
Pair Corralation between Direxion Daily and Siit Us
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 4.94 times more return on investment than Siit Us. However, Direxion Daily is 4.94 times more volatile than Siit Managed Volatility. It trades about 0.29 of its potential returns per unit of risk. Siit Managed Volatility is currently generating about 0.31 per unit of risk. If you would invest 5,385 in Direxion Daily Mid on September 5, 2024 and sell it today you would earn a total of 1,235 from holding Direxion Daily Mid or generate 22.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Direxion Daily Mid vs. Siit Managed Volatility
Performance |
| Timeline |
| Direxion Daily Mid |
| Siit Managed Volatility |
Direxion Daily and Siit Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Siit Us
The main advantage of trading using opposite Direxion Daily and Siit Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Siit Us 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 Siit Us will offset losses from the drop in Siit Us' 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 |
| Siit Us vs. Simt Managed Volatility | Siit Us vs. Hartford Schroders Smallmid | Siit Us vs. Fam Value Fund | Siit Us vs. Hartford Schroders Smallmid |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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