Correlation Between Direxion Daily and Swisscom

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

Diversification Opportunities for Direxion Daily and Swisscom

-0.65

Correlation Coefficient

Direxion Daily  Swisscom

Excellent diversification

The 3 months correlation between Direxion and Swisscom is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Semiconductor and Swisscom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swisscom AG 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 Swisscom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swisscom AG has no effect on the direction of Direxion Daily i.e., Direxion Daily and Swisscom go up and down completely randomly.

Pair Corralation between Direxion Daily and Swisscom

Given the investment horizon of 90 days Direxion Daily Semiconductor is expected to under-perform the Swisscom. In addition to that, Direxion Daily is 6.47 times more volatile than Swisscom AG. It trades about -0.29 of its total potential returns per unit of risk. Swisscom AG is currently generating about 0.07 per unit of volatility. If you would invest  54,800  in Swisscom AG on May 1, 2025 and sell it today you would earn a total of  1,750  from holding Swisscom AG or generate 3.19% return on investment over 90 days.

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

Direxion Daily Semiconductor  vs.  Swisscom AG

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

Swisscom AG

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swisscom AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Swisscom is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Direxion Daily and Swisscom

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

The idea behind Direxion Daily Semiconductor and Swisscom AG 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.