LGIH vs. NAIL

Last updated Jun 4, 2026

LGIH (LGI Homes, Inc.) is a stock, while NAIL (Direxion Daily Homebuilders & Supplies Bull 3X Shares) is Leveraged Equities fund tracking the Dow Jones U.S. Select Home Construction Index (300%). Over the past 10 years, LGIH returned 5.41%/yr vs 3.96%/yr for NAIL. A 0.74 correlation means they provide meaningful diversification when combined.

Performance

LGIH vs. NAIL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LGI Homes, Inc. (LGIH) and Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LGIH achieves a 10.13% return, which is significantly higher than NAIL's -23.44% return. Over the past 10 years, LGIH has outperformed NAIL with an annualized return of 5.41%, while NAIL has yielded a comparatively lower 3.96% annualized return.

LGIH

• 1D: -5.04%
• 1M: 5.41%
• YTD: 10.13%
• 6M: -12.63%
• 1Y: -4.94%
• 3Y*: -26.99%
• 5Y*: -22.84%
• 10Y*: 5.41%

NAIL

• 1D: -2.39%
• 1M: 1.50%
• YTD: -23.44%
• 6M: -42.68%
• 1Y: -20.27%
• 3Y*: -11.78%
• 5Y*: -14.07%
• 10Y*: 3.96%

*Multi-year figures are annualized to reflect compound growth (CAGR)

LGIH vs. NAIL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LGIH LGI Homes, Inc.	10.13%	-51.95%	-32.86%	43.80%	-40.06%	45.94%	49.82%	56.24%	-39.73%	161.16%
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares	-23.44%	-40.43%	-22.83%	259.61%	-75.23%	168.20%	-32.08%	184.63%	-73.96%	268.71%

Correlation

The correlation between LGIH and NAIL is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Aug 20, 2015	0.74

The correlation between LGIH and NAIL has been stable across timeframes, ranging from 0.74 to 0.83 - a consistent structural relationship.

Return for Risk

LGIH vs. NAIL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LGIH

LGIH Risk / Return Rank: 38
LGIH Sharpe Ratio Rank: 38
LGIH Sortino Ratio Rank: 38
LGIH Omega Ratio Rank: 37
LGIH Calmar Ratio Rank: 38
LGIH Martin Ratio Rank: 38

NAIL

NAIL Risk / Return Rank: 7
NAIL Sharpe Ratio Rank: 6
NAIL Sortino Ratio Rank: 9
NAIL Omega Ratio Rank: 9
NAIL Calmar Ratio Rank: 6
NAIL Martin Ratio Rank: 6

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LGIH vs. NAIL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LGI Homes, Inc. (LGIH) and Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	LGIH	NAIL	Difference
Sharpe ratio Return per unit of total volatility	-0.08	-0.23	+0.15
Sortino ratio Return per unit of downside risk	0.35	0.27	+0.08
Omega ratio Gain probability vs. loss probability	1.04	1.03	+0.01
Calmar ratio Return relative to maximum drawdown	-0.10	-0.30	+0.20
Martin ratio Return relative to average drawdown	-0.19	-0.53	+0.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LGIH vs. NAIL - Sharpe Ratio Comparison

The current LGIH Sharpe Ratio is -0.08, which is higher than the NAIL Sharpe Ratio of -0.23. The chart below compares the historical Sharpe Ratios of LGIH and NAIL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LGIH	NAIL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.08	-0.23	+0.15
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.47	-0.16	-0.31
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.11	0.04	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	-0.00	+0.22

Drawdowns

LGIH vs. NAIL - Drawdown Comparison

The maximum LGIH drawdown since its inception was -81.33%, smaller than the maximum NAIL drawdown of -93.75%. Use the drawdown chart below to compare losses from any high point for LGIH and NAIL.

Drawdown Indicators

	LGIH	NAIL	Difference
Max Drawdown Largest peak-to-trough decline	-81.33%	-93.75%	+12.42%
Max Drawdown (1Y) Largest decline over 1 year	-49.25%	-67.85%	+18.60%
Max Drawdown (3Y) Largest decline over 3 years	-75.68%	-82.09%	+6.41%
Max Drawdown (5Y) Largest decline over 5 years	-80.50%	-84.40%	+3.90%
Max Drawdown (10Y) Largest decline over 10 years	-81.33%	-93.75%	+12.42%
Current Drawdown Current decline from peak	-74.20%	-78.12%	+3.92%
Average Drawdown Average peak-to-trough decline	-28.01%	-43.80%	+15.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	26.36%	38.18%	-11.82%

Volatility

LGIH vs. NAIL - Volatility Comparison

The current volatility for LGI Homes, Inc. (LGIH) is 17.06%, while Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) has a volatility of 24.23%. This indicates that LGIH experiences smaller price fluctuations and is considered to be less risky than NAIL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LGIH	NAIL	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.06%	24.23%	-7.17%
Volatility (6M) Calculated over the trailing 6-month period	41.56%	60.86%	-19.30%
Volatility (1Y) Calculated over the trailing 1-year period	60.32%	87.63%	-27.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.04%	86.99%	-37.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	50.48%	89.20%	-38.72%

Dividends

LGIH vs. NAIL - Dividend Comparison

LGIH has not paid dividends to shareholders, while NAIL's dividend yield for the trailing twelve months is around 1.04%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
LGIH LGI Homes, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares	1.04%	1.55%	0.63%	0.22%	0.00%	0.00%	0.01%	0.17%	0.35%	1.25%

Frequently Asked Questions

Can I hold both LGIH and NAIL in my portfolio?

LGIH and NAIL have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LGIH or NAIL?

NAIL has higher volatility (24.23%) compared to LGIH (17.06%). In terms of maximum drawdown, LGIH dropped -81.33% vs NAIL's -93.75%.

Which has better risk-adjusted returns?

LGIH currently has the higher Sharpe Ratio (-0.08 vs -0.23), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.