Direxion Daily Correlations

TECL Etf  USD 99.01  0.96  0.98%   
The current 90-days correlation between Direxion Daily Technology and Direxion Daily Semiconductor is 0.91 (i.e., Almost no diversification). 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 Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Direxion Daily Correlation With Market

Very poor diversification

The correlation between Direxion Daily Technology and DJI is 0.81 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Technology and DJI in the same portfolio, assuming nothing else is changed.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Direxion Daily Technology. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Moving together with Direxion Etf

  0.99SSO ProShares Ultra SP500PairCorr
  0.99SPXL Direxion Daily SP500PairCorr
  0.99QLD ProShares Ultra QQQPairCorr
  0.89NRGU Bank of MontrealPairCorr
  0.99UPRO ProShares UltraPro SP500PairCorr
  0.68LABU Direxion Daily SPPairCorr
  0.91GUSH Direxion Daily SPPairCorr
  0.94UYG ProShares Ultra FinaPairCorr
  0.99VTI Vanguard Total StockPairCorr
  0.99SPY SPDR SP 500PairCorr
  0.99IVV iShares Core SPPairCorr
  0.66BND Vanguard Total BondPairCorr
  0.98VTV Vanguard Value IndexPairCorr
  0.99VUG Vanguard Growth IndexPairCorr
  0.98VO Vanguard Mid CapPairCorr
  0.91VEA Vanguard FTSE DevelopedPairCorr
  0.97VB Vanguard Small CapPairCorr
  0.96VWO Vanguard FTSE EmergingPairCorr
  0.96IBM International Business Earnings Call This WeekPairCorr
  0.9MMM 3M Company Earnings Call This WeekPairCorr
  0.97BAC Bank of America Sell-off TrendPairCorr
  0.94GE GE Aerospace Earnings Call This WeekPairCorr
  0.93AA Alcoa CorpPairCorr
  0.89PFE Pfizer IncPairCorr
  0.99CAT CaterpillarPairCorr
  0.96DIS Walt DisneyPairCorr
  0.98MSFT Microsoft Sell-off TrendPairCorr
  0.98JPM JPMorgan Chase Sell-off TrendPairCorr
  0.97AXP American Express Earnings Call This WeekPairCorr

Moving against Direxion Etf

  0.5FNGU MicroSectors FANG Index Symbol ChangePairCorr
  0.68MCD McDonalds Sell-off TrendPairCorr
  0.5KO Coca Cola Earnings Call This WeekPairCorr
  0.49PG Procter GamblePairCorr
  0.31VZ Verizon Communications Earnings Call This WeekPairCorr

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   
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LABUSOXL
LABUSPXL
NAILSOXL
NAILSPXL
NAILLABU
  
High negative correlations   
TECSSPXL
TECSSOXL
LABUTECS
NAILTECS

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.