Correlation Between Direxion Daily and Janus Global

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

Diversification Opportunities for Direxion Daily and Janus Global

-0.9

Correlation Coefficient

Direxion Daily  Janus Global

Pay attention - limited upside

The 3 months correlation between Direxion and Janus is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Semiconductor and Janus Global Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Life 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 Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Life has no effect on the direction of Direxion Daily i.e., Direxion Daily and Janus Global go up and down completely randomly.

Pair Corralation between Direxion Daily and Janus Global

Given the investment horizon of 90 days Direxion Daily Semiconductor is expected to under-perform the Janus Global. In addition to that, Direxion Daily is 6.26 times more volatile than Janus Global Life. It trades about -0.15 of its total potential returns per unit of risk. Janus Global Life is currently generating about 0.25 per unit of volatility. If you would invest  6,313  in Janus Global Life on July 26, 2025 and sell it today you would earn a total of  893.00  from holding Janus Global Life or generate 14.15% return on investment over 90 days.

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

Direxion Daily Semiconductor  vs.  Janus Global Life

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

Janus Global Life

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Global Life are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Janus Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Direxion Daily and Janus Global

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

The idea behind Direxion Daily Semiconductor and Janus Global Life 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.