Correlation Between Roundhill Uranium and Direxion Daily

Can any of the company-specific risk be diversified away by investing in both Roundhill Uranium and Direxion Daily 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 Roundhill Uranium and Direxion Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Roundhill Uranium ETF and Direxion Daily SP, you can compare the effects of market volatilities on Roundhill Uranium and Direxion Daily 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 Roundhill Uranium with a short position of Direxion Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Uranium and Direxion Daily.

Diversification Opportunities for Roundhill Uranium and Direxion Daily

-0.79

Correlation Coefficient

Roundhill Uranium  Direxion Daily

Pay attention - limited upside

The 3 months correlation between Roundhill and Direxion is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Uranium ETF and Direxion Daily SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion Daily SP and Roundhill Uranium 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 Roundhill Uranium ETF are associated (or correlated) with Direxion Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion Daily SP has no effect on the direction of Roundhill Uranium i.e., Roundhill Uranium and Direxion Daily go up and down completely randomly.

Pair Corralation between Roundhill Uranium and Direxion Daily

Allowing for the 90-day total investment horizon Roundhill Uranium ETF is expected to generate 0.61 times more return on investment than Direxion Daily. However, Roundhill Uranium ETF is 1.63 times less risky than Direxion Daily. It trades about 0.08 of its potential returns per unit of risk. Direxion Daily SP is currently generating about 0.04 per unit of risk. If you would invest  2,611  in Roundhill Uranium ETF on July 15, 2025 and sell it today you would earn a total of  250.00  from holding Roundhill Uranium ETF or generate 9.57% return on investment over 90 days.

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

Roundhill Uranium ETF  vs.  Direxion Daily SP

Roundhill Uranium ETF

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Roundhill Uranium ETF are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Roundhill Uranium may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Direxion Daily SP

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Direxion Daily SP are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal forward indicators, Direxion Daily may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Roundhill Uranium and Direxion Daily

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

The idea behind Roundhill Uranium ETF and Direxion Daily SP 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.