Direxion Shares Etf Performance
| LMBO Etf | 16.66 0.04 0.24% |
The etf shows a Beta (market volatility) of -0.25, which means not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Direxion Shares are expected to decrease at a much lower rate. During the bear market, Direxion Shares is likely to outperform the market.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Direxion Shares ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's fundamental drivers remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors. ...more
Direxion |
Direxion Shares Relative Risk vs. Return Landscape
If you would invest 2,430 in Direxion Shares ETF on December 23, 2024 and sell it today you would lose (764.00) from holding Direxion Shares ETF or give up 31.44% of portfolio value over 90 days. Direxion Shares ETF is currently does not generate positive expected returns and assumes 5.2503% risk (volatility on return distribution) over the 90 days horizon. In different words, 46% of etfs are less volatile than Direxion, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. Expected Return |
| Risk |
Direxion Shares Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Direxion Shares' investment risk. Standard deviation is the most common way to measure market volatility of etfs, such as Direxion Shares ETF, and traders can use it to determine the average amount a Direxion Shares' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0908
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | LMBO |
Estimated Market Risk
| 5.25 actual daily | 46 54% of assets are more volatile |
Expected Return
| -0.48 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.09 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Direxion Shares is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Direxion Shares by adding Direxion Shares to a well-diversified portfolio.
About Direxion Shares Performance
By examining Direxion Shares' fundamental ratios, stakeholders can obtain critical insights into Direxion Shares' financial health, operational efficiency, and overall profitability. These insights assist in making well-informed investment and management decisions. For example, a high Return on Assets and Return on Equity would indicate that Direxion Shares is effectively utilizing its assets and equity to generate significant profits, enhancing its appeal to investors. On the other hand, low ROA and ROE values could reveal issues in asset and equity management, highlighting the need for operational improvements.
| Direxion Shares ETF generated a negative expected return over the last 90 days | |
| Direxion Shares ETF has high historical volatility and very poor performance |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Direxion Shares ETF. 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. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
The market value of Direxion Shares ETF 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 Shares' value that differs from its market value or its book value, called intrinsic value, which is Direxion Shares' 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 Shares' market value can be influenced by many factors that don't directly affect Direxion Shares' 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 Shares' value and its price as these two are different measures arrived at by different means. Investors typically determine if Direxion Shares is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Direxion Shares' 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.