Correlation Between Direxion Daily and Shengkai Innovations
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Shengkai Innovations 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 Shengkai Innovations 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 Shengkai Innovations, you can compare the effects of market volatilities on Direxion Daily and Shengkai Innovations 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 Shengkai Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Shengkai Innovations.
Diversification Opportunities for Direxion Daily and Shengkai Innovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Direxion and Shengkai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Shengkai Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengkai Innovations 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 Shengkai Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengkai Innovations has no effect on the direction of Direxion Daily i.e., Direxion Daily and Shengkai Innovations go up and down completely randomly.
Pair Corralation between Direxion Daily and Shengkai Innovations
If you would invest 5,755 in Direxion Daily Mid on September 12, 2024 and sell it today you would earn a total of 513.00 from holding Direxion Daily Mid or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.44% |
| Values | Daily Returns |
Direxion Daily Mid vs. Shengkai Innovations
Performance |
| Timeline |
| Direxion Daily Mid |
| Shengkai Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Direxion Daily and Shengkai Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Shengkai Innovations
The main advantage of trading using opposite Direxion Daily and Shengkai Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Shengkai Innovations 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 Shengkai Innovations will offset losses from the drop in Shengkai Innovations' 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 |
| Shengkai Innovations vs. Lion One Metals | Shengkai Innovations vs. Franklin Credit Management | Shengkai Innovations vs. Harmony Gold Mining | Shengkai Innovations vs. Royalty Management Holding |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |