Correlation Between Direxion Daily and Unitronics

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

Diversification Opportunities for Direxion Daily and Unitronics

0.19

Correlation Coefficient

Direxion Daily  Unitronics

Average diversification

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

Pair Corralation between Direxion Daily and Unitronics

Given the investment horizon of 90 days Direxion Daily Semiconductor is expected to under-perform the Unitronics. In addition to that, Direxion Daily is 1.75 times more volatile than Unitronics. It trades about -0.2 of its total potential returns per unit of risk. Unitronics is currently generating about -0.1 per unit of volatility. If you would invest  255,292  in Unitronics on May 16, 2025 and sell it today you would lose (33,992) from holding Unitronics or give up 13.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	83.61%
Values	Daily Returns

Direxion Daily Semiconductor  vs.  Unitronics

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

Unitronics

Risk-Adjusted Performance

Weakest

Over the last 90 days Unitronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Direxion Daily and Unitronics

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

The idea behind Direxion Daily Semiconductor and Unitronics 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.