Correlation Between Direxion Daily and LifeGoal Investments

Can any of the company-specific risk be diversified away by investing in both Direxion Daily and LifeGoal Investments 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 LifeGoal Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Direxion Daily Regional and LifeGoal Investments, you can compare the effects of market volatilities on Direxion Daily and LifeGoal Investments 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 LifeGoal Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and LifeGoal Investments.

Diversification Opportunities for Direxion Daily and LifeGoal Investments

0.0

Correlation Coefficient

Direxion Daily  LifeGoal Investments

Pay attention - limited upside

The 3 months correlation between Direxion and LifeGoal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Regional and LifeGoal Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeGoal Investments 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 Regional are associated (or correlated) with LifeGoal Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeGoal Investments has no effect on the direction of Direxion Daily i.e., Direxion Daily and LifeGoal Investments go up and down completely randomly.

Pair Corralation between Direxion Daily and LifeGoal Investments

If you would invest (100.00) in LifeGoal Investments on December 30, 2024 and sell it today you would earn a total of  100.00  from holding LifeGoal Investments or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Direxion Daily Regional  vs.  LifeGoal Investments

Direxion Daily Regional

Risk-Adjusted Performance

Very Weak

Over the last 90 days Direxion Daily Regional has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

LifeGoal Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days LifeGoal Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, LifeGoal Investments is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Direxion Daily and LifeGoal Investments

The main advantage of trading using opposite Direxion Daily and LifeGoal Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, LifeGoal Investments 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 LifeGoal Investments will offset losses from the drop in LifeGoal Investments' long position.

The idea behind Direxion Daily Regional and LifeGoal Investments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.