Correlation Analysis Between Direxion Daily and AEX Amsterdam

This module allows you to analyze existing cross correlation between Direxion Daily FTSE Europe Bull and AEX Amsterdam. You can compare the effects of market volatilities on Direxion Daily and AEX Amsterdam 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 AEX Amsterdam. See also your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and AEX Amsterdam.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

Direxion Daily FTSE Europe Bul  vs.  AEX Amsterdam

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Direxion Daily is expected to generate 1.37 times less return on investment than AEX Amsterdam. But when comparing it to its historical volatility, Direxion Daily FTSE Europe Bull is 6.75 times less risky than AEX Amsterdam. It trades about 0.12 of its potential returns per unit of risk. AEX Amsterdam is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  82,274  in AEX Amsterdam on November 5, 2019 and sell it today you would lose (22,820)  from holding AEX Amsterdam or give up 27.74% of portfolio value over 30 days.

Pair Corralation between Direxion Daily and AEX Amsterdam

0.29
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

Diversification Opportunities for Direxion Daily and AEX Amsterdam

Direxion Daily FTSE Europe Bul diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily FTSE Europe Bul and AEX Amsterdam in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AEX Amsterdam 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 FTSE Europe Bull are associated (or correlated) with AEX Amsterdam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEX Amsterdam has no effect on the direction of Direxion Daily i.e. Direxion Daily and AEX Amsterdam go up and down completely randomly.
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See also your portfolio center. Please also try Transaction History module to view history of all your transactions and understand their impact on performance.


 
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