Correlation Between AXS TSLA and Direxion Daily
Can any of the company-specific risk be diversified away by investing in both AXS TSLA 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 AXS TSLA and Direxion Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXS TSLA Bear and Direxion Daily Semiconductor, you can compare the effects of market volatilities on AXS TSLA 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 AXS TSLA with a short position of Direxion Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXS TSLA and Direxion Daily.
Diversification Opportunities for AXS TSLA and Direxion Daily
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between AXS and Direxion is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding AXS TSLA Bear and Direxion Daily Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion Daily Semic and AXS TSLA 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 AXS TSLA Bear 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 Semic has no effect on the direction of AXS TSLA i.e., AXS TSLA and Direxion Daily go up and down completely randomly.
Pair Corralation between AXS TSLA and Direxion Daily
Given the investment horizon of 90 days AXS TSLA is expected to generate 5.13 times less return on investment than Direxion Daily. But when comparing it to its historical volatility, AXS TSLA Bear is 1.2 times less risky than Direxion Daily. It trades about 0.02 of its potential returns per unit of risk. Direxion Daily Semiconductor is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,863 in Direxion Daily Semiconductor on November 5, 2024 and sell it today you would earn a total of 183.00 from holding Direxion Daily Semiconductor or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXS TSLA Bear vs. Direxion Daily Semiconductor
Performance |
| Timeline |
| AXS TSLA Bear |
| Direxion Daily Semic |
AXS TSLA and Direxion Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXS TSLA and Direxion Daily
The main advantage of trading using opposite AXS TSLA and Direxion Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXS TSLA 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.| AXS TSLA vs. AXS 125X NVDA | AXS TSLA vs. Direxion Shares ETF | AXS TSLA vs. Direxion Shares ETF | AXS TSLA vs. Tuttle Capital Short |
| Direxion Daily vs. Direxion Daily Semiconductor | Direxion Daily vs. Direxion Daily SP | Direxion Daily vs. Direxion Daily Technology | Direxion Daily 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |