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.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

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  
0

Risk-Adjusted Performance

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

Direxion Daily and Facebook Volatility Contrast

 Predicted Return Density 
      Returns 

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 generate 2.35 times more return on investment than Facebook. However, Direxion Daily is 2.35 times more volatile than Facebook. It trades about 0.04 of its potential returns per unit of risk. Facebook is currently generating about -0.09 per unit of risk. If you would invest  1,831  in Direxion Daily FTSE China Bull 3X ETF on November 18, 2018 and sell it today you would earn a total of  74.00  from holding Direxion Daily FTSE China Bull 3X ETF or generate 4.04% return on investment over 30 days.

Pair Corralation between Direxion Daily and Facebook

-0.33
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy97.62%
ValuesDaily Returns

Diversification Opportunities for Direxion Daily and Facebook

Direxion Daily FTSE China Bull diversification synergy

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.

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