Direxion Daily Correlations

LABU Etf

USD 113.42 6.65 6.23%

The current 90-days correlation between Direxion Daily SP and Direxion Daily SP is -1.0 (i.e., Pay attention - limited upside). The correlation of Direxion Daily is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Direxion Daily Correlation With Market

Poor diversification

The correlation between Direxion Daily SP and DJI is 0.66 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily SP and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Direxion Daily SP. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Moving against Direxion Etf

0.52	RSPY	Tuttle Capital Management	Pair Corr
0.5	DSJA	DSJA	Pair Corr
0.44	MEME	Roundhill Investments	Pair Corr
0.38	UYG	ProShares Ultra Fina	Pair Corr
0.5	WMT	Walmart Aggressive Push	Pair Corr
0.43	HD	Home Depot	Pair Corr
0.4	AA	Alcoa Corp Fiscal Year End 15th of January 2025	Pair Corr
0.39	BAC	Bank of America Fiscal Year End 10th of January 2025	Pair Corr
0.34	XOM	Exxon Mobil Corp Sell-off Trend	Pair Corr
0.32	HPQ	HP Inc	Pair Corr
0.32	JPM	JPMorgan Chase Fiscal Year End 10th of January 2025	Pair Corr

Related Correlations Analysis

	LABD	SOXL	TECL	TNA	SOXS
LABD		-0.39	-0.04	-0.18	0.2	LABD
SOXL	-0.39		0.35	-0.05	-0.78	SOXL
TECL	-0.04	0.35		0.77	-0.78	TECL
TNA	-0.18	-0.05	0.77		-0.38	TNA
SOXS	0.2	-0.78	-0.78	-0.38		SOXS
	LABD	SOXL	TECL	TNA	SOXS

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

TNA	+ 0.77	TECL
TECL	+ 0.35	SOXL
SOXS	+ 0.2	LABD

High negative correlations

SOXS	- 0.78	TECL
SOXS	- 0.78	SOXL
SOXL	- 0.39	LABD
SOXS	- 0.38	TNA
TNA	- 0.18	LABD
TNA	- 0.05	SOXL

Direxion Daily Constituents Risk-Adjusted Indicators

There is a big difference between Direxion Etf performing well and Direxion Daily ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Direxion Daily's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
LABD	2.89	0.63	0.03	(0.07)	3.06	(3.51)	7.73	(5.80)	19.75
SOXL	4.57	(0.78)	0.00	(0.05)	0.00	0.00	8.73	(11.53)	30.19
TECL	2.91	(0.16)	0.02	0.07	4.35	(2.91)	5.44	(7.23)	19.94
TNA	2.82	(0.06)	0.11	0.11	2.94	(3.04)	6.18	(5.14)	22.54
SOXS	4.65	0.78	0.02	(0.04)	5.23	(5.33)	11.61	(8.59)	36.60

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