Direxion Daily Correlations
| TMV Etf | USD 41.11 0.96 2.39% |
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 perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Direxion Daily moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Direxion Daily 20 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.
Good diversification
The correlation between Direxion Daily 20 and NYA is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily 20 and NYA in the same portfolio, assuming nothing else is changed.
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The ability to find closely correlated positions to Direxion Daily 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 Daily 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 Daily - 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 Daily 20 to buy it.
Moving together with Direxion Etf
| 0.87 | TBT | ProShares UltraShort | PairCorr |
| 0.86 | TBF | ProShares Short 20 | PairCorr |
| 0.84 | PST | ProShares UltraShort | PairCorr |
| 0.84 | TYO | Direxion Daily 7 | PairCorr |
| 0.71 | GLD | SPDR Gold Shares | PairCorr |
Moving against Direxion Etf
| 0.66 | BULZ | MicroSectors Solactive | PairCorr |
| 0.62 | WTID | UBS ETRACS | PairCorr |
| 0.55 | GDXD | MicroSectors Gold Miners | PairCorr |
| 0.41 | NAIL | Direxion Daily Homeb | PairCorr |
| 0.79 | INTC | Intel Financial Report 25th of July 2024 | PairCorr |
| 0.67 | MCD | McDonalds Financial Report 25th of July 2024 | PairCorr |
| 0.54 | PFE | Pfizer Inc Aggressive Push | PairCorr |
Related Correlations Analysis
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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
| High negative correlations
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Direxion Daily Competition 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| META | 1.91 | 0.11 | 0.05 | 0.13 | 2.32 | 3.27 | 30.88 | |||
| MSFT | 1.02 | (0.11) | 0.00 | (0.05) | 0.00 | 2.11 | 5.31 | |||
| UBER | 1.62 | (0.05) | (0.01) | 0.02 | 1.71 | 2.64 | 18.39 | |||
| F | 1.61 | 0.04 | 0.05 | 0.07 | 1.89 | 4.88 | 9.61 | |||
| T | 0.90 | (0.03) | 0.00 | (0.05) | 0.00 | 1.88 | 4.89 | |||
| A | 1.25 | 0.00 | 0.02 | 0.05 | 1.40 | 2.29 | 6.31 | |||
| CRM | 1.25 | (0.13) | 0.00 | (0.03) | 0.00 | 2.83 | 10.84 | |||
| JPM | 0.79 | 0.11 | 0.08 | 0.14 | 1.29 | 1.94 | 8.65 | |||
| MRK | 0.68 | 0.07 | 0.07 | 0.14 | 0.63 | 1.35 | 6.92 | |||
| XOM | 0.81 | 0.20 | 0.17 | 0.47 | 0.77 | 1.77 | 5.64 |
Be your own money manager
Our tools can tell you how much better you can do entering a position in Direxion Daily without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Already Invested in Direxion Daily 20?
The danger of trading Direxion Daily 20 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 Daily 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 Daily. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Direxion Daily 20 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 Daily 20 is a strong investment it is important to analyze Direxion Daily'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 Daily's future performance. For an informed investment choice regarding Direxion Etf, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Direxion Daily 20. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in population. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
The market value of Direxion Daily 20 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 Daily's value that differs from its market value or its book value, called intrinsic value, which is Direxion Daily'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 Daily's market value can be influenced by many factors that don't directly affect Direxion Daily'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 Daily's value and its price as these two are different measures arrived at by different means. Investors typically determine if Direxion Daily is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Direxion Daily'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.