Market Research Data

LABU Correlation & Overlap

Fund Strategy Analysis

Direxion Daily S&P Biotech Bull 3X Shares (LABU) is a key instrument in the Leveraged Biotech category. Data regarding LABU is frequently analyzed by investors planning tax loss harvesting strategies, specifically those seeking to maintain Leveraged Biotech exposure while navigating IRS wash sale regulations.

Note: This page summarizes historical similarity metrics and does not assess tax treatment or regulatory outcomes.

Top Correlated ETFs

Leveraged Biotech
XBI
CORR ≥ 0.95*
95.0%
Correlation
A holdings overlap of roughly <10% suggests that XBI and LABU maintain aligned market exposure. This metric is frequently used to assess the potential for maintaining economic position while realizing a tax loss.
Overlap: < 10%
Yahoo Finance ↗View XBI Analysis →
LABD
INVERSE
-99.0%
Inverse Correlation
A holdings overlap of roughly <10% suggests that LABD and LABU maintain aligned market exposure. This metric is frequently used to assess the potential for maintaining economic position while realizing a tax loss.
Overlap: < 10%
Yahoo Finance ↗View LABD Analysis →

Note on Overlap: Estimates are based on the most recent publicly disclosed holdings. Leveraged/Inverse products often use swaps resulting in low physical overlap despite high correlation.

Leveraged/Inverse Note: Leveraged ETFs are designed to deliver multiples of daily returns and may experience significant performance divergence over longer periods.

* Correlation calculated using 2-year daily price returns.

Wash Sale Re-Entry Date (Reference Tool)

If you sold LABU at a loss, U.S. wash sale rules generally restrict repurchasing the same or a substantially identical security within 30 days.

*For informational purposes only. Consult a tax professional regarding IRC §1091. This tool calculates the 31st day following a sale.

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What is Correlation?

Correlation measures the historical relationship between two assets. A value of 1.00 (100%) means they move perfectly in sync. For tax loss harvesting, high correlation is generally desired to stay in the market while realizing a loss.

Index Methodology

Under the wash sale rule, "substantially identical" assets are disallowed for loss claims. Many investors argue that ETFs tracking different indices (e.g., S&P 500 vs. Russell 1000) are not substantially identical.

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