Correlation Between Direxion Shares and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Direxion Shares and Janus Henderson 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 Shares and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Direxion Shares ETF and Janus Henderson Mortgage Backed, you can compare the effects of market volatilities on Direxion Shares and Janus Henderson 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 Shares with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Shares and Janus Henderson.
Diversification Opportunities for Direxion Shares and Janus Henderson
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Direxion and Janus is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Shares ETF and Janus Henderson Mortgage Backe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Mort and Direxion Shares 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 Shares ETF are associated (or correlated) with Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Mort has no effect on the direction of Direxion Shares i.e., Direxion Shares and Janus Henderson go up and down completely randomly.
Pair Corralation between Direxion Shares and Janus Henderson
Given the investment horizon of 90 days Direxion Shares ETF is expected to generate 24.79 times more return on investment than Janus Henderson. However, Direxion Shares is 24.79 times more volatile than Janus Henderson Mortgage Backed. It trades about 0.16 of its potential returns per unit of risk. Janus Henderson Mortgage Backed is currently generating about -0.05 per unit of risk. If you would invest 913.00 in Direxion Shares ETF on November 2, 2024 and sell it today you would earn a total of 1,705 from holding Direxion Shares ETF or generate 186.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Direxion Shares ETF vs. Janus Henderson Mortgage Backe
Performance |
| Timeline |
| Direxion Shares ETF |
| Janus Henderson Mort |
Direxion Shares and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Shares and Janus Henderson
The main advantage of trading using opposite Direxion Shares and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Shares position performs unexpectedly, Janus Henderson 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 Janus Henderson will offset losses from the drop in Janus Henderson's long position.| Direxion Shares vs. Direxion Shares ETF | Direxion Shares vs. Direxion Shares ETF | Direxion Shares vs. AXS TSLA Bear | Direxion Shares vs. Direxion Daily AMZN |
| Janus Henderson vs. SPDR Portfolio Mortgage | Janus Henderson vs. Janus Henderson Short | Janus Henderson vs. iShares CMBS ETF | Janus Henderson vs. Janus Detroit Street |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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