Direxion Correlations
| FNTC Etf | USD 12.75 0.00 0.00% |
The correlation of Direxion 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 perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Direxion moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Direxion moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Average diversification
The correlation between Direxion and NYA is 0.17 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Direxion and NYA in the same portfolio, assuming nothing else is changed.
Direxion |
The ability to find closely correlated positions to Direxion could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Direxion when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Direxion - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Direxion to buy it.
Moving together with Direxion Etf
| 0.61 | SSO | ProShares Ultra SP500 | PairCorr |
| 0.85 | NRGU | MicroSectors Big Oil | PairCorr |
| 0.61 | UPRO | ProShares UltraPro SP500 | PairCorr |
| 0.84 | GUSH | Direxion Daily SP | PairCorr |
| 0.69 | UYG | ProShares Ultra Fina | PairCorr |
| 0.76 | MAPP | Harbor ETF Trust | PairCorr |
| 0.79 | SNPD | DBX ETF Trust Low Volatility | PairCorr |
| 0.75 | EVUS | iShares ESG Aware | PairCorr |
| 0.83 | XOP | SPDR SP Oil | PairCorr |
Moving against Direxion Etf
Related Correlations Analysis
| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
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
| High negative correlations
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Direxion Competition Risk-Adjusted Indicators
There is a big difference between Direxion Etf performing well and Direxion 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'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| META | 1.74 | 0.31 | 0.19 | 0.32 | 1.45 | 3.27 | 24.74 | |||
| MSFT | 0.94 | (0.05) | (0.05) | 0.03 | 1.08 | 2.11 | 5.31 | |||
| UBER | 1.59 | (0.04) | 0.02 | 0.06 | 1.62 | 2.83 | 18.39 | |||
| F | 1.64 | 0.11 | 0.11 | 0.12 | 1.66 | 4.88 | 9.61 | |||
| T | 0.95 | (0.02) | (0.05) | 0.03 | 1.18 | 2.18 | 5.92 | |||
| A | 1.16 | (0.07) | (0.02) | 0.03 | 1.42 | 2.26 | 6.31 | |||
| CRM | 1.24 | (0.12) | (0.04) | 0.00 | 1.95 | 2.83 | 10.84 | |||
| JPM | 0.82 | 0.09 | 0.08 | 0.15 | 1.25 | 1.94 | 8.65 | |||
| MRK | 0.65 | 0.04 | 0.04 | 0.13 | 0.64 | 1.18 | 6.92 | |||
| XOM | 0.79 | 0.30 | 0.30 | 0.73 | 0.45 | 1.96 | 4.66 |
Direxion Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Direxion etf to make a market-neutral strategy. Peer analysis of Direxion could also be used in its relative valuation, which is a method of valuing Direxion by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
Already Invested in Direxion?
The danger of trading Direxion is mainly related to its market volatility and ETF specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Direxion is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Direxion. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Direxion is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Direxion is a strong investment it is important to analyze Direxion's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Direxion's future performance. For an informed investment choice regarding Direxion Etf, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
The market value of Direxion is measured differently than its book value, which is the value of Direxion that is recorded on the company's balance sheet. Investors also form their own opinion of Direxion's value that differs from its market value or its book value, called intrinsic value, which is Direxion's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Direxion's market value can be influenced by many factors that don't directly affect Direxion's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Direxion's value and its price as these two are different measures arrived at by different means. Investors typically determine if Direxion is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Direxion's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.