Pair Correlation Between Direxion Daily and Facebook

This module allows you to analyze existing cross correlation between Direxion Daily FTSE China Bull 3X ETF and Facebook Inc. 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 2.69 times more volatile than Facebook Inc. It trades about -0.1 of its total potential returns per unit of risk. Facebook Inc is currently generating about -0.03 per unit of volatility. If you would invest  18,129  in Facebook Inc on January 19, 2018 and sell it today you would lose (393.00)  from holding Facebook Inc or give up 2.17% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Direxion Daily and Facebook
0.86

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor 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 Inc 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 Inc 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 Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days Facebook Inc has generated negative risk-adjusted returns adding no value to investors with long positions.