Correlation Between GraniteShares 15x and Direxion Daily
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and Direxion Daily 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 GraniteShares 15x and Direxion Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 15x Long and Direxion Daily Real, you can compare the effects of market volatilities on GraniteShares 15x and Direxion Daily 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 GraniteShares 15x with a short position of Direxion Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and Direxion Daily.
Diversification Opportunities for GraniteShares 15x and Direxion Daily
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and Direxion is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and Direxion Daily Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion Daily Real and GraniteShares 15x 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 GraniteShares 15x Long are associated (or correlated) with Direxion Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion Daily Real has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and Direxion Daily go up and down completely randomly.
Pair Corralation between GraniteShares 15x and Direxion Daily
Given the investment horizon of 90 days GraniteShares 15x is expected to generate 1.33 times less return on investment than Direxion Daily. In addition to that, GraniteShares 15x is 1.48 times more volatile than Direxion Daily Real. It trades about 0.08 of its total potential returns per unit of risk. Direxion Daily Real is currently generating about 0.16 per unit of volatility. If you would invest 1,194 in Direxion Daily Real on September 1, 2024 and sell it today you would earn a total of 129.00 from holding Direxion Daily Real or generate 10.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GraniteShares 15x Long vs. Direxion Daily Real
Performance |
| Timeline |
| GraniteShares 15x Long |
| Direxion Daily Real |
GraniteShares 15x and Direxion Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and Direxion Daily
The main advantage of trading using opposite GraniteShares 15x and Direxion Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, Direxion Daily 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 Direxion Daily will offset losses from the drop in Direxion Daily's long position.| GraniteShares 15x vs. Direxion Daily MSFT | GraniteShares 15x vs. Direxion Daily GOOGL | GraniteShares 15x vs. AXS 125X NVDA | GraniteShares 15x vs. Direxion Shares ETF |
| Direxion Daily vs. Direxion Daily Real | Direxion Daily vs. Direxion Daily MSCI | Direxion Daily vs. Direxion Daily Retail | Direxion Daily vs. Direxion Daily Healthcare |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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