Correlation Between Point Bridge and Direxion Daily

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

By analyzing existing cross correlation between Point Bridge GOP and Direxion Daily SP, you can compare the effects of market volatilities on Point Bridge and Direxion Daily 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 Point Bridge with a short position of Direxion Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Point Bridge and Direxion Daily.

Diversification Opportunities for Point Bridge and Direxion Daily

-0.75

Correlation Coefficient

Point Bridge  Direxion Daily

Pay attention - limited upside

The 3 months correlation between Point and Direxion is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Point Bridge GOP and Direxion Daily SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion Daily SP and Point Bridge 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 Point Bridge GOP are associated (or correlated) with Direxion Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion Daily SP has no effect on the direction of Point Bridge i.e., Point Bridge and Direxion Daily go up and down completely randomly.

Pair Corralation between Point Bridge and Direxion Daily

Given the investment horizon of 90 days Point Bridge GOP is expected to generate 0.16 times more return on investment than Direxion Daily. However, Point Bridge GOP is 6.24 times less risky than Direxion Daily. It trades about 0.08 of its potential returns per unit of risk. Direxion Daily SP is currently generating about -0.22 per unit of risk. If you would invest  5,093  in Point Bridge GOP on July 8, 2025 and sell it today you would earn a total of  176.00  from holding Point Bridge GOP or generate 3.46% return on investment over 90 days.

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

Point Bridge GOP  vs.  Direxion Daily SP

Point Bridge GOP

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Point Bridge GOP are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Point Bridge is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 uncertain performance in the last few months, the Etf's fundamental drivers remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Pair Trading with Point Bridge and Direxion Daily

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

The idea behind Point Bridge GOP and Direxion Daily SP 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.