Market Research Data

TECS Correlation & Overlap

Fund Strategy Analysis

Direxion Daily Technology Bear 3X Shares (TECS) is a key instrument in the Inverse Tech category. TECS offers targeted access to the Inverse Tech market. To capture tax benefits without exiting this position entirely, market participants often evaluate pairs with high correlation but distinct underlying indices.

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

Top Correlated ETFs

Inverse Tech

SQQQ

CORR ≥ 0.95*

95.0%

Correlation

With approximately <10% overlap in holdings, SQQQ and TECS exhibit highly synchronized price behavior. This structural similarity is a key data point for tax-loss harvesting research.

Overlap: < 10%

Yahoo Finance ↗View SQQQ Analysis →

TECL

INVERSE

-99.0%

Inverse Correlation

A holdings overlap of roughly <10% suggests that TECL and TECS 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 TECL 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 TECS at a loss, U.S. wash sale rules generally restrict repurchasing the same or a substantially identical security within 30 days.

Sale Date

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

Thinking of selling TECS?Beta

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Related ETF Research

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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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