Correlation Between T Rex and T REX
Can any of the company-specific risk be diversified away by investing in both T Rex and T REX 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 T Rex and T REX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rex 2X Long and T REX 2X Long, you can compare the effects of market volatilities on T Rex and T REX 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 T Rex with a short position of T REX. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and T REX.
Diversification Opportunities for T Rex and T REX
Very good diversification
The 3 months correlation between NVDX and NFLU is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Long and T REX 2X Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T REX 2X and T Rex 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 T Rex 2X Long are associated (or correlated) with T REX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T REX 2X has no effect on the direction of T Rex i.e., T Rex and T REX go up and down completely randomly.
Pair Corralation between T Rex and T REX
Given the investment horizon of 90 days T Rex is expected to generate 10.79 times less return on investment than T REX. In addition to that, T Rex is 1.6 times more volatile than T REX 2X Long. It trades about 0.03 of its total potential returns per unit of risk. T REX 2X Long is currently generating about 0.56 per unit of volatility. If you would invest 2,740 in T REX 2X Long on September 3, 2024 and sell it today you would earn a total of 1,060 from holding T REX 2X Long or generate 38.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Rex 2X Long vs. T REX 2X Long
Performance |
| Timeline |
| T Rex 2X |
| T REX 2X |
T Rex and T REX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rex and T REX
The main advantage of trading using opposite T Rex and T REX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex position performs unexpectedly, T REX 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 T REX will offset losses from the drop in T REX's long position.| T Rex vs. Tidal Trust II | T Rex vs. Tidal Trust II | T Rex vs. Direxion Daily META | T Rex vs. Direxion Daily META |
| T REX vs. ProShares Ultra SP500 | T REX vs. Direxion Daily SP500 | T REX vs. ProShares Ultra QQQ | T REX vs. Direxion Daily SP |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |