Correlation Between Direxion Daily and Asuransi Bina

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

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

Diversification Opportunities for Direxion Daily and Asuransi Bina

0.79

Correlation Coefficient

Direxion Daily  Asuransi Bina

Poor diversification

The 3 months correlation between Direxion and Asuransi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Asuransi Bina Dana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Bina Dana 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 Mid are associated (or correlated) with Asuransi Bina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Bina Dana has no effect on the direction of Direxion Daily i.e., Direxion Daily and Asuransi Bina go up and down completely randomly.

Pair Corralation between Direxion Daily and Asuransi Bina

Given the investment horizon of 90 days Direxion Daily Mid is expected to under-perform the Asuransi Bina. In addition to that, Direxion Daily is 2.51 times more volatile than Asuransi Bina Dana. It trades about -0.11 of its total potential returns per unit of risk. Asuransi Bina Dana is currently generating about -0.14 per unit of volatility. If you would invest  380,000  in Asuransi Bina Dana on December 28, 2024 and sell it today you would lose (40,000) from holding Asuransi Bina Dana or give up 10.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.72%
Values	Daily Returns

Direxion Daily Mid  vs.  Asuransi Bina Dana

Direxion Daily Mid

Risk-Adjusted Performance

Very Weak

Over the last 90 days Direxion Daily Mid 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 fundamental 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.

Asuransi Bina Dana

Risk-Adjusted Performance

Very Weak

Over the last 90 days Asuransi Bina Dana has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Direxion Daily and Asuransi Bina

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

The idea behind Direxion Daily Mid and Asuransi Bina Dana 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.