Correlation Between Direxion Daily and Core Molding

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

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

Diversification Opportunities for Direxion Daily and Core Molding

-0.75

Correlation Coefficient

Direxion Daily  Core Molding

Pay attention - limited upside

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

Pair Corralation between Direxion Daily and Core Molding

Given the investment horizon of 90 days Direxion Daily Semiconductor is expected to under-perform the Core Molding. In addition to that, Direxion Daily is 1.74 times more volatile than Core Molding Technologies. It trades about -0.14 of its total potential returns per unit of risk. Core Molding Technologies is currently generating about 0.21 per unit of volatility. If you would invest  1,659  in Core Molding Technologies on June 29, 2025 and sell it today you would earn a total of  509.00  from holding Core Molding Technologies or generate 30.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Direxion Daily Semiconductor  vs.  Core Molding Technologies

Direxion Daily Semic

Risk-Adjusted Performance

Weakest

Over the last 90 days Direxion Daily Semiconductor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in October 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Core Molding Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Core Molding Technologies are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak primary indicators, Core Molding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Direxion Daily and Core Molding

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

The idea behind Direxion Daily Semiconductor and Core Molding Technologies 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.