Correlation Between Direxion Daily and Nordea Invest

By analyzing existing cross correlation between Direxion Daily 20 and Nordea Invest Europe, you can compare the effects of market volatilities on Direxion Daily and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Nordea Invest.

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Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Nordea Invest 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 Direxion Daily and Nordea Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Direxion Daily and Nordea Invest

-0.08
  Correlation Coefficient
Direxion Daily 20
Nordea Invest Europe

Good diversification

The 3 months correlation between Direxion and Nordea is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily 20 Yr Treasury and Nordea Invest Europe Enhanced in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Europe 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 20 are associated (or correlated) with Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Europe has no effect on the direction of Direxion Daily i.e. Direxion Daily and Nordea Invest go up and down completely randomly.

Pair Corralation between Direxion Daily and Nordea Invest

If you would invest (100.00)  in Nordea Invest Europe on June 6, 2020 and sell it today you would earn a total of  100.00  from holding Nordea Invest Europe or generate -100.0% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Direxion Daily 20 Yr Treasury   vs.  Nordea Invest Europe Enhanced

 Performance (%) 
      Timeline 
Direxion Daily 20 
00

Direxion Daily Risk-Adjusted Performance

Over the last 30 days Direxion Daily 20 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Direxion Daily is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
Nordea Invest Europe 
00

Nordea Invest Risk-Adjusted Performance

Over the last 30 days Nordea Invest Europe has generated negative risk-adjusted returns adding no value to investors with long positions. Although quite persistent forward indicators, Nordea Invest is not utilizing all of its potentials. The current stock price mess, may contribute to short term losses for the institutional investors.

Direxion Daily and Nordea Invest Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.


 
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