Correlation Between Direxion Daily and Figma,

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

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

Diversification Opportunities for Direxion Daily and Figma,

0.43

Correlation Coefficient

Direxion Daily  Figma,

Very weak diversification

The 3 months correlation between Direxion and Figma, is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Aerospace and Figma, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figma, 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 Aerospace are associated (or correlated) with Figma,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figma, Inc has no effect on the direction of Direxion Daily i.e., Direxion Daily and Figma, go up and down completely randomly.

Pair Corralation between Direxion Daily and Figma,

Given the investment horizon of 90 days Direxion Daily is expected to generate 15.1 times less return on investment than Figma,. But when comparing it to its historical volatility, Direxion Daily Aerospace is 19.61 times less risky than Figma,. It trades about 0.29 of its potential returns per unit of risk. Figma, Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  2,219  in Figma, Inc on May 11, 2025 and sell it today you would earn a total of  5,592  from holding Figma, Inc or generate 252.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	34.92%
Values	Daily Returns

Direxion Daily Aerospace  vs.  Figma, Inc

Direxion Daily Aerospace

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Direxion Daily Aerospace are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Direxion Daily displayed solid returns over the last few months and may actually be approaching a breakup point.

Figma, Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Figma, Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady forward indicators, Figma, reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Direxion Daily and Figma,

The main advantage of trading using opposite Direxion Daily and Figma, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Figma, 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 Figma, will offset losses from the drop in Figma,'s long position.

The idea behind Direxion Daily Aerospace and Figma, Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.