Market Research Data

TECL Correlation & Overlap

Fund Strategy Analysis

Direxion Daily Technology Bull 3X Shares (TECL) is a key instrument in the Leveraged Tech category. Data regarding TECL is frequently analyzed by investors planning tax loss harvesting strategies, specifically those seeking to maintain Leveraged Tech 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 Tech
TQQQ
CORR ≥ 0.95*
96.0%
Correlation
A holdings overlap of roughly <10% suggests that TQQQ and TECL 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 TQQQ Analysis →
TECS
INVERSE
-99.0%
Inverse Correlation
A holdings overlap of roughly <10% suggests that TECS and TECL 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 TECS Analysis →
SOXL
CORR ≥ 0.95*
85.0%
Correlation
SOXL and TECL share a specific relationship in their market behavior. The key distinction for tax purposes often lies in their divergent index methodologies despite high correlation.
Overlap: < 10%
Yahoo Finance ↗View SOXL 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 TECL 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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