Industrial Select Sector Etf Alpha and Beta Analysis
| XLI Etf | USD 120.47 0.22 0.18% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Industrial Select Sector. It also helps investors analyze the systematic and unsystematic risks associated with investing in Industrial Select over a specified time horizon. Remember, high Industrial 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 Industrial Select's market risk premium analysis include:
Beta 1.02 | Alpha 0.0553 | Risk 0.69 | Sharpe Ratio 0.15 | Expected Return 0.1 |
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.
Industrial |
Industrial Select Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Industrial Select market risk premium is the additional return an investor will receive from holding Industrial 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 Industrial 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 Industrial Select's performance over market.| α | 0.06 | β | 1.02 |
Industrial 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 Industrial Select's Buy-and-hold return. Our buy-and-hold chart shows how Industrial Select performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Industrial Select Market Price Analysis
Market price analysis indicators help investors to evaluate how Industrial 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 Industrial Select shares will generate the highest return on investment. By understating and applying Industrial Select etf market price indicators, traders can identify Industrial Select position entry and exit signals to maximize returns.
Industrial Select Return and Market Media
The median price of Industrial Select for the period between Sun, Jan 21, 2024 and Sat, Apr 20, 2024 is 120.69 with a coefficient of variation of 3.69. The daily time series for the period is distributed with a sample standard deviation of 4.41, arithmetic mean of 119.65, and mean deviation of 3.75. The Etf received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | A bearish options bet that capitalizes on a double-top forming in this high-flying sector | 02/21/2024 |
2 | About half of SP 500s industrial stocks hit record highs in 2024 report - Seeking Alpha | 03/07/2024 |
3 | Aviation stocks note higher bets, defense contractors among least shorted as of Feb end - Seeking Alpha | 03/15/2024 |
4 | Should You Invest in the Industrial Select Sector SPDR ETF | 03/27/2024 |
5 | Buy-rated and sell-rated stocks within Industrials - Citi | 04/05/2024 |
6 | Notable ETF Inflow Detected - XLI, UNP, RTX, UPS - Nasdaq | 04/08/2024 |
7 | Weekly Market Pulse Are Higher Interest Rates Good For The Economy | 04/15/2024 |
8 | Defense and infrastructure improves Industrials - SSGA | 04/19/2024 |
About Industrial 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 Industrial or other etfs. Alpha measures the amount that position in Industrial 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.
Industrial Select Implied Volatility | 19.4 |
Industrial Select's implied volatility exposes the market's sentiment of Industrial Select Sector stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Industrial 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 Industrial Select stock will not fluctuate a lot when Industrial 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 Industrial 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, Industrial Select's short interest history, or implied volatility extrapolated from Industrial Select options trading.
Build Portfolio with Industrial 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 Industrial Select Backtesting, Portfolio Optimization, Industrial Select Correlation, Industrial Select Hype Analysis, Industrial Select Volatility, Industrial Select History and analyze Industrial Select Performance. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Industrial 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.