Correlation Between Direxion Daily and Bonava AB
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By analyzing existing cross correlation between Direxion Daily Mid and Bonava AB, you can compare the effects of market volatilities on Direxion Daily and Bonava AB 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 Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Bonava AB.
Diversification Opportunities for Direxion Daily and Bonava AB
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Direxion and Bonava is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava AB 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 Bonava AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonava AB has no effect on the direction of Direxion Daily i.e., Direxion Daily and Bonava AB go up and down completely randomly.
Pair Corralation between Direxion Daily and Bonava AB
Given the investment horizon of 90 days Direxion Daily Mid is expected to generate 1.08 times more return on investment than Bonava AB. However, Direxion Daily is 1.08 times more volatile than Bonava AB. It trades about 0.22 of its potential returns per unit of risk. Bonava AB is currently generating about 0.0 per unit of risk. If you would invest 4,627 in Direxion Daily Mid on September 6, 2024 and sell it today you would earn a total of 2,035 from holding Direxion Daily Mid or generate 43.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Direxion Daily Mid vs. Bonava AB
Performance |
Timeline |
Direxion Daily Mid |
Bonava AB |
Direxion Daily and Bonava AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Direxion Daily and Bonava AB
The main advantage of trading using opposite Direxion Daily and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Bonava AB 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 Bonava AB will offset losses from the drop in Bonava AB's long position.Direxion Daily vs. Direxion Daily Retail | Direxion Daily vs. Direxion Daily Industrials | Direxion Daily vs. Direxion Daily Transportation | Direxion Daily vs. Direxion Daily FTSE |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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