Correlation Between Direxion Daily and Tremblant Global
Can any of the company-specific risk be diversified away by investing in both Direxion Daily and Tremblant 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 Tremblant Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Direxion Daily SP and Tremblant Global ETF, you can compare the effects of market volatilities on Direxion Daily and Tremblant 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 Tremblant Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Tremblant Global.
Diversification Opportunities for Direxion Daily and Tremblant Global
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Direxion and Tremblant is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily SP and Tremblant Global ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tremblant Global ETF 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 SP are associated (or correlated) with Tremblant Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tremblant Global ETF has no effect on the direction of Direxion Daily i.e., Direxion Daily and Tremblant Global go up and down completely randomly.
Pair Corralation between Direxion Daily and Tremblant Global
Given the investment horizon of 90 days Direxion Daily SP is expected to generate 5.7 times more return on investment than Tremblant Global. However, Direxion Daily is 5.7 times more volatile than Tremblant Global ETF. It trades about 0.19 of its potential returns per unit of risk. Tremblant Global ETF is currently generating about 0.53 per unit of risk. If you would invest 15,302 in Direxion Daily SP on September 24, 2025 and sell it today you would earn a total of 2,390 from holding Direxion Daily SP or generate 15.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Direxion Daily SP vs. Tremblant Global ETF
Performance |
| Timeline |
| Direxion Daily SP |
| Tremblant Global ETF |
Direxion Daily and Tremblant Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Tremblant Global
The main advantage of trading using opposite Direxion Daily and Tremblant Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily position performs unexpectedly, Tremblant 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 Tremblant Global will offset losses from the drop in Tremblant Global's long position.| Direxion Daily vs. Innovator Laddered Allocation | Direxion Daily vs. ProShares UltraPro Dow30 | Direxion Daily vs. Direxion Daily Regional | Direxion Daily vs. Rockefeller Small Mid Cap |
| Tremblant Global vs. Northern Lights | Tremblant Global vs. Innovator SP 500 | Tremblant Global vs. YOKE Core ETF | Tremblant Global vs. Innovator SP 500 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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