Correlation Between Direxion Daily and Tuttle Capital

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

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

Diversification Opportunities for Direxion Daily and Tuttle Capital

0.44

Correlation Coefficient

Direxion Daily  Tuttle Capital

Very weak diversification

The 3 months correlation between Direxion and Tuttle is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily SP and Tuttle Capital Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuttle Capital Short 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 SP are associated (or correlated) with Tuttle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuttle Capital Short has no effect on the direction of Direxion Daily i.e., Direxion Daily and Tuttle Capital go up and down completely randomly.

Pair Corralation between Direxion Daily and Tuttle Capital

Given the investment horizon of 90 days Direxion Daily SP is expected to under-perform the Tuttle Capital. In addition to that, Direxion Daily is 1.81 times more volatile than Tuttle Capital Short. It trades about -0.31 of its total potential returns per unit of risk. Tuttle Capital Short is currently generating about 0.02 per unit of volatility. If you would invest  3,262  in Tuttle Capital Short on August 26, 2025 and sell it today you would earn a total of  37.00  from holding Tuttle Capital Short or generate 1.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Direxion Daily SP  vs.  Tuttle Capital Short

Direxion Daily SP

Risk-Adjusted Performance

Weakest

Over the last 90 days Direxion Daily SP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's fundamental drivers remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Tuttle Capital Short

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tuttle Capital Short are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Tuttle Capital is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Direxion Daily and Tuttle Capital

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

The idea behind Direxion Daily SP and Tuttle Capital Short 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.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.