Correlation Between Direxion Daily and Blackrock Exchange

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

Diversification Opportunities for Direxion Daily and Blackrock Exchange

-0.93

Correlation Coefficient

Direxion Daily  Blackrock Exchange

Pay attention - limited upside

The 3 months correlation between Direxion and Blackrock is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Semiconductor and Blackrock Exchange Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Exchange 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 Blackrock Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Exchange has no effect on the direction of Direxion Daily i.e., Direxion Daily and Blackrock Exchange go up and down completely randomly.

Pair Corralation between Direxion Daily and Blackrock Exchange

Given the investment horizon of 90 days Direxion Daily Semiconductor is expected to under-perform the Blackrock Exchange. In addition to that, Direxion Daily is 8.53 times more volatile than Blackrock Exchange Portfolio. It trades about -0.23 of its total potential returns per unit of risk. Blackrock Exchange Portfolio is currently generating about 0.22 per unit of volatility. If you would invest  237,742  in Blackrock Exchange Portfolio on May 6, 2025 and sell it today you would earn a total of  19,163  from holding Blackrock Exchange Portfolio or generate 8.06% 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.  Blackrock Exchange Portfolio

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.

Blackrock Exchange

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Exchange Portfolio are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Blackrock Exchange may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Direxion Daily and Blackrock Exchange

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

The idea behind Direxion Daily Semiconductor and Blackrock Exchange Portfolio 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .