Correlation Between Direxion Daily and Double Medical
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By analyzing existing cross correlation between Direxion Daily Mid and Double Medical Technology, you can compare the effects of market volatilities on Direxion Daily and Double Medical 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 Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Double Medical.
Diversification Opportunities for Direxion Daily and Double Medical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Direxion and Double is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Mid and Double Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Double Medical Technology 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 Mid are associated (or correlated) with Double Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Double Medical Technology has no effect on the direction of Direxion Daily i.e., Direxion Daily and Double Medical go up and down completely randomly.
Pair Corralation between Direxion Daily and Double Medical
Given the investment horizon of 90 days Direxion Daily is expected to generate 1.09 times less return on investment than Double Medical. But when comparing it to its historical volatility, Direxion Daily Mid is 1.05 times less risky than Double Medical. It trades about 0.17 of its potential returns per unit of risk. Double Medical Technology is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,450 in Double Medical Technology on September 11, 2024 and sell it today you would earn a total of 804.00 from holding Double Medical Technology or generate 32.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 90.63% |
Values | Daily Returns |
Direxion Daily Mid vs. Double Medical Technology
Performance |
Timeline |
Direxion Daily Mid |
Double Medical Technology |
Direxion Daily and Double Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Direxion Daily and Double Medical
The main advantage of trading using opposite Direxion Daily and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Double Medical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Double Medical will offset losses from the drop in Double Medical's long position.Direxion Daily vs. Direxion Daily Retail | Direxion Daily vs. Direxion Daily Industrials | Direxion Daily vs. Direxion Daily Transportation | Direxion Daily vs. Direxion Daily FTSE |
Double Medical vs. Cultural Investment Holdings | Double Medical vs. Gome Telecom Equipment | Double Medical vs. Holitech Technology Co | Double Medical vs. Zotye Automobile Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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