Market Research Data

TZA Correlation & Overlap

Fund Strategy Analysis

Direxion Daily Small Cap Bear 3X Shares (TZA) is a key instrument in the Inverse Small Cap category. TZA offers targeted access to the Inverse Small Cap 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 Small Cap

SRTY

CORR ≥ 0.99*

>0.99

Correlation

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

Overlap: < 10%

Yahoo Finance ↗SRTY Data Coming Soon

TNA

INVERSE

-99.0%

Inverse Correlation

TNA and TZA 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 TNA 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 TZA 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.

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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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