Correlation Between Direxion Daily and Thanachart Capital
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Thanachart Capital 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 Thanachart Capital 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 Thanachart Capital Public, you can compare the effects of market volatilities on Direxion Daily and Thanachart Capital 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 Thanachart Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Thanachart Capital.
Diversification Opportunities for Direxion Daily and Thanachart Capital
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Direxion and Thanachart is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Thanachart Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanachart Capital Public 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 Thanachart Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanachart Capital Public has no effect on the direction of Direxion Daily i.e., Direxion Daily and Thanachart Capital go up and down completely randomly.
Pair Corralation between Direxion Daily and Thanachart Capital
Given the investment horizon of 90 days Direxion Daily is expected to generate 33.61 times less return on investment than Thanachart Capital. But when comparing it to its historical volatility, Direxion Daily Mid is 24.86 times less risky than Thanachart Capital. It trades about 0.05 of its potential returns per unit of risk. Thanachart Capital Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,230 in Thanachart Capital Public on September 4, 2024 and sell it today you would earn a total of 720.00 from holding Thanachart Capital Public or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.77% |
| Values | Daily Returns |
Direxion Daily Mid vs. Thanachart Capital Public
Performance |
| Timeline |
| Direxion Daily Mid |
| Thanachart Capital Public |
Direxion Daily and Thanachart Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Thanachart Capital
The main advantage of trading using opposite Direxion Daily and Thanachart Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Thanachart Capital 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 Thanachart Capital will offset losses from the drop in Thanachart Capital'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 |
| Thanachart Capital vs. Kiatnakin Phatra Bank | Thanachart Capital vs. Supalai Public | Thanachart Capital vs. Thai Oil Public |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |