Correlation Between Direxion Daily and Injective

Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Injective 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 Injective 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 Injective, you can compare the effects of market volatilities on Direxion Daily and Injective 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 Injective. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Injective.

Diversification Opportunities for Direxion Daily and Injective

-0.19

Correlation Coefficient

Direxion Daily  Injective

Good diversification

The 3 months correlation between Direxion and Injective is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Semiconductor and Injective in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Injective 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 Injective. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Injective has no effect on the direction of Direxion Daily i.e., Direxion Daily and Injective go up and down completely randomly.

Pair Corralation between Direxion Daily and Injective

Given the investment horizon of 90 days Direxion Daily Semiconductor is expected to under-perform the Injective. But the etf apears to be less risky and, when comparing its historical volatility, Direxion Daily Semiconductor is 1.31 times less risky than Injective. The etf trades about -0.23 of its potential returns per unit of risk. The Injective is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  956.00  in Injective on May 6, 2025 and sell it today you would earn a total of  257.00  from holding Injective or generate 26.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

Direxion Daily Semiconductor  vs.  Injective

Direxion Daily Semic

Risk-Adjusted Performance

Very Weak

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 September 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Injective

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Injective are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward-looking indicators, Injective exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Direxion Daily and Injective

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

The idea behind Direxion Daily Semiconductor and Injective 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.