Technology Select Sector Etf Alpha and Beta Analysis
| XLK Etf | USD 199.83 2.23 1.13% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Technology Select Sector. It also helps investors analyze the systematic and unsystematic risks associated with investing in Technology Select over a specified time horizon. Remember, high Technology Select's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Technology Select's market risk premium analysis include:
Beta 0.32 | Alpha (0.06) | Risk 1.16 | Sharpe Ratio (0.01) | Expected Return (0.01) |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Technology |
Technology Select Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Technology Select market risk premium is the additional return an investor will receive from holding Technology Select long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Technology Select. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Technology Select's performance over market.| α | -0.06 | β | 0.32 |
Technology Select expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Technology Select's Buy-and-hold return. Our buy-and-hold chart shows how Technology Select performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Technology Select Market Price Analysis
Market price analysis indicators help investors to evaluate how Technology Select etf reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Technology Select shares will generate the highest return on investment. By understating and applying Technology Select etf market price indicators, traders can identify Technology Select position entry and exit signals to maximize returns.
Technology Select Return and Market Media
The median price of Technology Select for the period between Tue, Jan 30, 2024 and Mon, Apr 29, 2024 is 205.29 with a coefficient of variation of 2.05. The daily time series for the period is distributed with a sample standard deviation of 4.18, arithmetic mean of 204.51, and mean deviation of 3.34. The Etf received a lot of media exposure during the period. Price Growth (%) |
| Timeline |
1 | Bears Prowl Wall Street As Magnificent 7 Tumble Bitcoin Sinks After Record High Whats Driving Markets Tuesday | 03/05/2024 |
2 | 3 Huge Dividends That Could Be Cut Soon | 03/26/2024 |
3 | XLK SP 500 Technology ETF underperforms in Q1 Apple, Intel, Adobe among top losers - Seeking Alpha | 03/29/2024 |
4 | Should You Invest in the Fidelity MSCI Information Technology Index ETF | 04/02/2024 |
5 | 5 Favorite Sector ETFs Of Q1 Earnings | 04/08/2024 |
6 | Global Stock leaders for 2030 in Health Tech - UBS | 04/10/2024 |
7 | Apple Comes In From The Cold | 04/15/2024 |
8 | EU Clears Microsofts 13B OpenAI Investment from Formal Probe A Relief for Tech Giants | 04/17/2024 |
9 | SP 500 Nears 6-Day Slide, Nasdaq 100 Faces Worst Week Since Late 2022 Whats Driving Markets Friday | 04/19/2024 |
10 | Whats In Store For Microsoft ETFs This Earnings Season | 04/24/2024 |
About Technology Select Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Technology or other etfs. Alpha measures the amount that position in Technology Select Sector has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Technology Select Implied Volatility | 23.92 |
Technology Select's implied volatility exposes the market's sentiment of Technology Select Sector stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Technology Select's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Technology Select stock will not fluctuate a lot when Technology Select's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Technology Select in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Technology Select's short interest history, or implied volatility extrapolated from Technology Select options trading.
Build Portfolio with Technology Select
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Technology Select Backtesting, Portfolio Optimization, Technology Select Correlation, Technology Select Hype Analysis, Technology Select Volatility, Technology Select History and analyze Technology Select Performance. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Technology Select technical etf analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, etf market cycles, or different charting patterns.