Correlation Analysis Between Direxion Daily and Facebook

This module allows you to analyze existing cross correlation between Direxion Daily FTSE China Bull 3X ETF and Facebook. You can compare the effects of market volatilities on Direxion Daily and Facebook 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 Facebook. See also your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Facebook.
 Time Horizon     30 Days    Login   to change
Symbolsvs

Direxion Daily FTSE China Bull  vs.  Facebook Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Direxion Daily FTSE China Bull 3X ETF is expected to under-perform the Facebook. In addition to that, Direxion Daily is 2.65 times more volatile than Facebook. It trades about -0.22 of its total potential returns per unit of risk. Facebook is currently generating about 0.35 per unit of volatility. If you would invest  18,449  in Facebook on May 20, 2018 and sell it today you would earn a total of  1,382  from holding Facebook or generate 7.49% return on investment over 30 days.

Pair Corralation between Direxion Daily and Facebook

-0.29
Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 
Direxion Daily FTSE  
0 

Risk-Adjusted Performance

Over the last 30 days Direxion Daily FTSE China Bull 3X ETF has generated negative risk-adjusted returns adding no value to investors with long positions.
Facebook  
23 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.

My Equities

My Current Equities and Potential Positions
View AllNext
GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1152.26

Thematic Opportunities

Explore Investment Opportunities
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Money Managers module to screen money managers from public funds and etfs managed around the world.