Correlation Between Direxion Daily and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Calamos ETF 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 Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Direxion Daily Dow and Calamos ETF Trust, you can compare the effects of market volatilities on Direxion Daily and Calamos ETF 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 Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Calamos ETF.
Diversification Opportunities for Direxion Daily and Calamos ETF
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Direxion and Calamos is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Dow and Calamos ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos ETF Trust 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 Dow are associated (or correlated) with Calamos ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos ETF Trust has no effect on the direction of Direxion Daily i.e., Direxion Daily and Calamos ETF go up and down completely randomly.
Pair Corralation between Direxion Daily and Calamos ETF
Given the investment horizon of 90 days Direxion Daily Dow is expected to generate 24.82 times more return on investment than Calamos ETF. However, Direxion Daily is 24.82 times more volatile than Calamos ETF Trust. It trades about 0.1 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.24 per unit of risk. If you would invest 1,547 in Direxion Daily Dow on September 14, 2024 and sell it today you would earn a total of 1,536 from holding Direxion Daily Dow or generate 99.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 28.92% |
| Values | Daily Returns |
Direxion Daily Dow vs. Calamos ETF Trust
Performance |
| Timeline |
| Direxion Daily Dow |
| Calamos ETF Trust |
Direxion Daily and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Calamos ETF
The main advantage of trading using opposite Direxion Daily and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Calamos ETF 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 Calamos ETF will offset losses from the drop in Calamos ETF's long position.| Direxion Daily vs. Direxion Daily SP | Direxion Daily vs. Direxion Daily Cnsmr | Direxion Daily vs. Direxion Daily Transportation | Direxion Daily vs. Direxion Daily Retail |
| Calamos ETF vs. FT Vest Equity | Calamos ETF vs. Northern Lights | Calamos ETF vs. Dimensional International High | Calamos ETF vs. JPMorgan Fundamental Data |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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