Direxion Daily Regional Etf Volatility

DPST Etf  USD 63.62  0.29  0.45%   
Direxion Daily Regional secures Sharpe Ratio (or Efficiency) of -0.0408, which denotes the etf had a -0.0408% return per unit of risk over the last 3 months. Direxion Daily Regional exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Direxion Daily's Mean Deviation of 3.81, standard deviation of 5.37, and Variance of 28.87 to check the risk estimate we provide. Key indicators related to Direxion Daily's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Direxion Daily Etf volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Direxion daily returns, and it is calculated using variance and standard deviation. We also use Direxion's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Direxion Daily volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Direxion Daily can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Direxion Daily at lower prices. For example, an investor can purchase Direxion stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Direxion Daily's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving against Direxion Etf

  0.75FNGU MicroSectors FANG IndexPairCorr
  0.65BST BlackRock Science TechPairCorr
  0.61QLD ProShares Ultra QQQPairCorr
  0.57SSO ProShares Ultra SP500PairCorr
  0.57UPRO ProShares UltraPro SP500PairCorr
  0.57WTMF WisdomTree ManagedPairCorr
  0.56SPXL Direxion Daily SP500PairCorr
  0.51UYG ProShares Ultra FinaPairCorr
  0.51ARKW ARK Next GenerationPairCorr

Direxion Daily Market Sensitivity And Downside Risk

Direxion Daily's beta coefficient measures the volatility of Direxion etf compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Direxion etf's returns against your selected market. In other words, Direxion Daily's beta of 3.7 provides an investor with an approximation of how much risk Direxion Daily etf can potentially add to one of your existing portfolios. Direxion Daily Regional exhibits very low volatility with skewness of -0.43 and kurtosis of 1.5. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Direxion Daily's etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Direxion Daily's etf price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Direxion Daily Regional Demand Trend
Check current 90 days Direxion Daily correlation with market (NYSE Composite)

Direxion Beta

    
  3.7  
Direxion standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  5.43  
It is essential to understand the difference between upside risk (as represented by Direxion Daily's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Direxion Daily's daily returns or price. Since the actual investment returns on holding a position in direxion etf tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Direxion Daily.

Using Direxion Put Option to Manage Risk

Put options written on Direxion Daily grant holders of the option the right to sell a specified amount of Direxion Daily at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Direxion Etf cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Direxion Daily's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Direxion Daily will be realized, the loss incurred will be offset by the profits made with the option trade.

Direxion Daily's PUT expiring on 2024-04-19

   Profit   
       Direxion Daily Price At Expiration  

Current Direxion Daily Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $95.0-0.91160.009122024-04-1932.3 - 34.923.71View
Put
2024-04-19 PUT at $90.0-0.91520.010122024-04-1927.2 - 29.824.0View
Put
2024-04-19 PUT at $85.0-0.85060.014542024-04-1921.8 - 24.121.31View
Put
2024-04-19 PUT at $82.0-0.86840.0152232024-04-1918.2 - 20.813.44View
Put
2024-04-19 PUT at $81.0-0.89210.015152024-04-1918.8 - 20.38.9View
Put
2024-04-19 PUT at $80.0-0.89540.01561612024-04-1916.3 - 19.118.5View
Put
2024-04-19 PUT at $79.0-0.92920.0141172024-04-1916.6 - 17.911.13View
Put
2024-04-19 PUT at $78.0-0.97260.0088992024-04-1915.6 - 16.57.1View
Put
2024-04-19 PUT at $77.0-0.95680.0122172024-04-1914.6 - 15.610.0View
Put
2024-04-19 PUT at $76.0-0.95480.0266682024-04-1913.3 - 14.99.8View
Put
2024-04-19 PUT at $75.0-0.8520.02221352024-04-1911.7 - 13.711.11View
View All Direxion Daily Options

Direxion Daily Regional Etf Volatility Analysis

Volatility refers to the frequency at which Direxion Daily etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Direxion Daily's price changes. Investors will then calculate the volatility of Direxion Daily's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Direxion Daily's volatility:

Historical Volatility

This type of etf volatility measures Direxion Daily's fluctuations based on previous trends. It's commonly used to predict Direxion Daily's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Direxion Daily's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Direxion Daily's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Direxion Daily Regional Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Direxion Daily Projected Return Density Against Market

Given the investment horizon of 90 days the etf has the beta coefficient of 3.7031 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Direxion Daily will likely underperform.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Direxion Daily or Direxion Funds sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Direxion Daily's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Direxion etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Direxion Daily Regional has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite.
   Predicted Return Density   
       Returns  
Direxion Daily's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how direxion etf's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Direxion Daily Price Volatility?

Several factors can influence a etf's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Direxion Daily Etf Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Direxion Daily is -2453.78. The daily returns are distributed with a variance of 29.44 and standard deviation of 5.43. The mean deviation of Direxion Daily Regional is currently at 3.78. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α
Alpha over NYSE Composite
-0.66
β
Beta against NYSE Composite3.70
σ
Overall volatility
5.43
Ir
Information ratio -0.09

Direxion Daily Etf Return Volatility

Direxion Daily historical daily return volatility represents how much of Direxion Daily etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The exchange-traded fund inherits 5.4262% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6235% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Direxion Daily Volatility

Volatility is a rate at which the price of Direxion Daily or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Direxion Daily may increase or decrease. In other words, similar to Direxion's beta indicator, it measures the risk of Direxion Daily and helps estimate the fluctuations that may happen in a short period of time. So if prices of Direxion Daily fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
The fund invests at least 80 percent of its net assets in financial instruments, such as swap agreements, securities of the index, and ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index. Regional Banks is traded on NYSEARCA Exchange in the United States.
Direxion Daily's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Direxion Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Direxion Daily's price varies over time.

3 ways to utilize Direxion Daily's volatility to invest better

Higher Direxion Daily's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Direxion Daily Regional etf is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Direxion Daily Regional etf volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Direxion Daily Regional investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Direxion Daily's etf can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Direxion Daily's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Direxion Daily Investment Opportunity

Direxion Daily Regional has a volatility of 5.43 and is 8.76 times more volatile than NYSE Composite. 47 percent of all equities and portfolios are less risky than Direxion Daily. You can use Direxion Daily Regional to protect your portfolios against small market fluctuations. The etf experiences a normal downward trend and little activity. Check odds of Direxion Daily to be traded at $62.98 in 90 days.

Very weak diversification

The correlation between Direxion Daily Regional and NYA is 0.43 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Regional and NYA in the same portfolio, assuming nothing else is changed.

Direxion Daily Additional Risk Indicators

The analysis of Direxion Daily's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Direxion Daily's investment and either accepting that risk or mitigating it. Along with some common measures of Direxion Daily etf's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Direxion Daily Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Direxion Daily as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Direxion Daily's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Direxion Daily's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Direxion Daily Regional.
When determining whether Direxion Daily Regional is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Direxion Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Direxion Daily Regional Etf. Highlighted below are key reports to facilitate an investment decision about Direxion Daily Regional Etf:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Direxion Daily Regional. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in state.
You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
The market value of Direxion Daily Regional is measured differently than its book value, which is the value of Direxion that is recorded on the company's balance sheet. Investors also form their own opinion of Direxion Daily's value that differs from its market value or its book value, called intrinsic value, which is Direxion Daily's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Direxion Daily's market value can be influenced by many factors that don't directly affect Direxion Daily's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Direxion Daily's value and its price as these two are different measures arrived at by different means. Investors typically determine if Direxion Daily is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Direxion Daily's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.