This jives with our sense that investments in leveraged ETFs

Criminals were taught how to work, read religious books and received guidance. For insane people, asylums were constructed. The asylums help insane people recover from their illness. This jives with our sense that investments in leveraged ETFs will lose value when the underlying index bounces around but has on net change, and actually quantifies the degree of loss you can expect.The regression fit also tells us that with average volatility, we can expect a 3x S 500 ETF to have a positive monthly gain when the index gains 0.14% or more and outperform the index when it gains 0.21% or more.Finally, an R2 of 0.9994 is extremely high. We’re talking about a virtually deterministic relationship for monthly gains of a perfect 3x S 500 to net S 500 change and volatility.Let’s round out the analysis with a look at annual gains (below).Again heart iphone case, we see excellent mapping of 3x S 500 ETF annual gains to S 500 annual gains. There was one apparent outlier where the S 500 gained 0.3% but the 3x ETF lost 35.7%.

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