Direxion Daily Correlations

FAS Etf

USD 172.16 0.47 0.27%

The current 90-days correlation between Direxion Daily Financial and Direxion Daily Financial is -0.21 (i.e., Very good diversification). 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 Financial and DJI is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily Financial and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Direxion Daily Financial. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in nation.

Moving together with Direxion Etf

0.7	SSO	ProShares Ultra SP500	Pair Corr
1.0	UYG	ProShares Ultra Fina	Pair Corr
0.68	SHNY	Microsectors Gold	Pair Corr
0.8	GDXU	MicroSectors Gold Miners	Pair Corr
0.63	HD	Home Depot	Pair Corr
0.8	GE	GE Aerospace	Pair Corr
0.74	BAC	Bank of America	Pair Corr
0.67	T	ATT Inc Aggressive Push	Pair Corr
0.63	IBM	International Business	Pair Corr
0.75	JNJ	Johnson Johnson	Pair Corr

Moving against Direxion Etf

0.57	WTID	UBS ETRACS	Pair Corr
0.33	NVDL	GraniteShares 15x Long Downward Rally	Pair Corr
0.32	NVDU	Direxion Daily NVDA Downward Rally	Pair Corr

Related Correlations Analysis

	FAZ	TNA	ERX	SOXL	TECL
FAZ		-0.25	-0.41	0.11	0.03	FAZ
TNA	-0.25		0.56	0.15	0.51	TNA
ERX	-0.41	0.56		0.1	-0.04	ERX
SOXL	0.11	0.15	0.1		0.67	SOXL
TECL	0.03	0.51	-0.04	0.67		TECL
	FAZ	TNA	ERX	SOXL	TECL

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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

TECL	+ 0.67	SOXL
ERX	+ 0.56	TNA
TECL	+ 0.51	TNA
SOXL	+ 0.15	TNA
SOXL	+ 0.11	FAZ
SOXL	+ 0.1	ERX

High negative correlations

ERX	- 0.41	FAZ
TNA	- 0.25	FAZ
TECL	- 0.04	ERX

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	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
FAZ	1.98	(0.07)	(39.56)	0.00	0.00	4.06	(3.55)	17.42
TNA	2.49	(0.32)	(0.12)	0.00	0.00	4.69	(4.69)	18.28
ERX	1.87	(0.20)	(0.20)	0.00	0.00	2.85	(4.80)	9.86
SOXL	4.23	0.00	0.00	6.51	(3.89)	7.86	(7.44)	32.20
TECL	3.03	(0.06)	(0.02)	0.00	0.00	5.54	(6.67)	20.89

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