Correlation Between Barclays Capital and Direxion Daily
Can any of the company-specific risk be diversified away by investing in both Barclays Capital 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 Barclays Capital and Direxion Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Direxion Daily Technology, you can compare the effects of market volatilities on Barclays Capital 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 Barclays Capital with a short position of Direxion Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Direxion Daily.
Diversification Opportunities for Barclays Capital and Direxion Daily
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and Direxion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Direxion Daily Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion Daily Technology and Barclays Capital 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 Barclays Capital 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 Technology has no effect on the direction of Barclays Capital i.e., Barclays Capital and Direxion Daily go up and down completely randomly.
Pair Corralation between Barclays Capital and Direxion Daily
If you would invest (100.00) in Barclays Capital on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Barclays Capital 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 |
Barclays Capital vs. Direxion Daily Technology
Performance |
Timeline |
Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Direxion Daily Technology |
Barclays Capital and Direxion Daily Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barclays Capital and Direxion Daily
The main advantage of trading using opposite Barclays Capital and Direxion Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital 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.Barclays Capital vs. ProShares UltraShort FTSE | Barclays Capital vs. ProShares UltraShort Gold | Barclays Capital vs. ProShares UltraShort Silver |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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