Direxion Beta vs. Equity Positions Weight
| HJEN Etf | USD 10.80 0.24 2.17% |
For Direxion profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Direxion to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Direxion utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Direxion's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Direxion over time as well as its relative position and ranking within its peers.
Direxion |
The market value of Direxion is measured differently than its book value, which is the value of Direxion that is recorded on the company's balance sheet. Investors also form their own opinion of Direxion's value that differs from its market value or its book value, called intrinsic value, which is Direxion's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Direxion's market value can be influenced by many factors that don't directly affect Direxion's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Direxion's value and its price as these two are different measures arrived at by different means. Investors typically determine if Direxion is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Direxion's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Direxion Equity Positions Weight vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Direxion's current stock value. Our valuation model uses many indicators to compare Direxion value to that of its competitors to determine the firm's financial worth. Direxion is one of the top ETFs in beta as compared to similar ETFs. It is rated # 2 ETF in equity positions weight as compared to similar ETFs making about 67.35 of Equity Positions Weight per Beta. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Direxion's earnings, one of the primary drivers of an investment's value.Direxion Equity Positions Weight vs. Beta
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Direxion |
| = | 1.47 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Percentage of fund asset invested in equity instruments. About 80% of global funds and ETFs carry equity instruments on their balance sheet.
Direxion |
| = | 99.00 % |
Funds with most asset allocated to stocks can be subclassified into many different categories such as market capitalization or investment style.
Direxion Equity Positions Weight Comparison
Direxion is currently under evaluation in equity positions weight as compared to similar ETFs.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Direxion will likely underperform.
Direxion Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Direxion, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Direxion will eventually generate negative long term returns. The profitability progress is the general direction of Direxion's change in net profit over the period of time. It can combine multiple indicators of Direxion, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
The fund, under normal circumstances, invests at least 80 percent of its assets in the securities that comprise the index or investments with economic characteristics similar to the securities included in the index. Direxion Hydrogen is traded on NYSEARCA Exchange in the United States.
Direxion Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Direxion. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Direxion position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Direxion's important profitability drivers and their relationship over time.
Use Direxion in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Direxion position performs unexpectedly, the other equity 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 will appreciate offsetting losses from the drop in the long position's value.Direxion Pair Trading
Direxion Pair Trading Analysis
The ability to find closely correlated positions to Direxion could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Direxion when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Direxion - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Direxion to buy it.
The correlation of Direxion is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Direxion moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Direxion moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Direxion can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Direxion position
In addition to having Direxion in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Currency Funds Thematic Idea Now
Currency Funds
Funds or Etfs investing in a single currency or combination of currencies from different countries in order to replicate respective foreign exchange markets. The Currency Funds theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Currency Funds Theme or any other thematic opportunities.
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Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project Direxion's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Direxion at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Direxion's income statement, its balance sheet, and the statement of cash flows.