Correlation Between Direxion Daily and 842400HS5
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By analyzing existing cross correlation between Direxion Daily Mid and EIX 585 01 NOV 27, you can compare the effects of market volatilities on Direxion Daily and 842400HS5 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 842400HS5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and 842400HS5.
Diversification Opportunities for Direxion Daily and 842400HS5
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Direxion and 842400HS5 is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and EIX 585 01 NOV 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIX 585 01 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 842400HS5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIX 585 01 has no effect on the direction of Direxion Daily i.e., Direxion Daily and 842400HS5 go up and down completely randomly.
Pair Corralation between Direxion Daily and 842400HS5
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 11.5 times more return on investment than 842400HS5. However, Direxion Daily is 11.5 times more volatile than EIX 585 01 NOV 27. It trades about 0.28 of its potential returns per unit of risk. EIX 585 01 NOV 27 is currently generating about -0.05 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 Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Direxion Daily Mid vs. EIX 585 01 NOV 27
Performance |
| Timeline |
| Direxion Daily Mid |
| EIX 585 01 |
Direxion Daily and 842400HS5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and 842400HS5
The main advantage of trading using opposite Direxion Daily and 842400HS5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, 842400HS5 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 842400HS5 will offset losses from the drop in 842400HS5'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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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