Correlation Between DWS and Direxion Daily
Can any of the company-specific risk be diversified away by investing in both DWS and Direxion Daily 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 DWS and Direxion Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DWS and Direxion Daily Mid, you can compare the effects of market volatilities on DWS and Direxion Daily 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 DWS with a short position of Direxion Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of DWS and Direxion Daily.
Diversification Opportunities for DWS and Direxion Daily
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DWS and Direxion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DWS and Direxion Daily Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion Daily Mid and DWS 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 DWS are associated (or correlated) with Direxion Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion Daily Mid has no effect on the direction of DWS i.e., DWS and Direxion Daily go up and down completely randomly.
Pair Corralation between DWS and Direxion Daily
If you would invest 4,296 in Direxion Daily Mid on January 26, 2024 and sell it today you would earn a total of 491.00 from holding Direxion Daily Mid or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
DWS vs. Direxion Daily Mid
Performance |
| Timeline |
| DWS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Direxion Daily Mid |
DWS and Direxion Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DWS and Direxion Daily
The main advantage of trading using opposite DWS and Direxion Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DWS position performs unexpectedly, Direxion Daily 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 Daily will offset losses from the drop in Direxion Daily's long position.| DWS vs. ProShares Ultra Bloomberg | DWS vs. Direxion Daily Semiconductor | DWS vs. MicroSectors Big Oil | DWS vs. Direxion Daily SP |
| 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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