Ishares Biotechnology Etf Market Value
| IBB Etf | USD 128.02 1.91 1.51% |
| Symbol | IShares |
The market value of iShares Biotechnology ETF is measured differently than its book value, which is the value of IShares that is recorded on the company's balance sheet. Investors also form their own opinion of IShares Biotechnology's value that differs from its market value or its book value, called intrinsic value, which is IShares Biotechnology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because IShares Biotechnology's market value can be influenced by many factors that don't directly affect IShares Biotechnology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between IShares Biotechnology's value and its price as these two are different measures arrived at by different means. Investors typically determine if IShares Biotechnology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IShares Biotechnology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
IShares Biotechnology 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to IShares Biotechnology's etf what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of IShares Biotechnology.
| 02/28/2023 |
| 04/23/2024 |
If you would invest 0.00 in IShares Biotechnology on February 28, 2023 and sell it all today you would earn a total of 0.00 from holding iShares Biotechnology ETF or generate 0.0% return on investment in IShares Biotechnology over 420 days. IShares Biotechnology is related to or competes with First Trust, Direxion Daily, Drum Income, and EA Series. The fund generally will invest at least 80 percent of its assets in the component securities of its index and in investm... More
IShares Biotechnology Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure IShares Biotechnology's etf current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess iShares Biotechnology ETF upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.17) | |||
| Maximum Drawdown | 4.31 | |||
| Value At Risk | (1.85) | |||
| Potential Upside | 1.41 |
IShares Biotechnology Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for IShares Biotechnology's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as IShares Biotechnology's standard deviation. In reality, there are many statistical measures that can use IShares Biotechnology historical prices to predict the future IShares Biotechnology's volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | (0.24) | |||
| Treynor Ratio | (0.08) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of IShares Biotechnology's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
iShares Biotechnology ETF Backtested Returns
iShares Biotechnology ETF holds Efficiency (Sharpe) Ratio of -0.0685, which attests that the entity had a -0.0685% return per unit of risk over the last 3 months. iShares Biotechnology ETF exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out IShares Biotechnology's Risk Adjusted Performance of (0.05), market risk adjusted performance of (0.07), and Standard Deviation of 1.06 to validate the risk estimate we provide. The etf retains a Market Volatility (i.e., Beta) of 1.3, which attests to a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, IShares Biotechnology will likely underperform.
Auto-correlation | -0.15 |
Insignificant reverse predictability
iShares Biotechnology ETF has insignificant reverse predictability. Overlapping area represents the amount of predictability between IShares Biotechnology time series from 28th of February 2023 to 26th of September 2023 and 26th of September 2023 to 23rd of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of iShares Biotechnology ETF price movement. The serial correlation of -0.15 indicates that less than 15.0% of current IShares Biotechnology price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.15 | |
| Spearman Rank Test | 0.04 | |
| Residual Average | 0.0 | |
| Price Variance | 66.98 |
iShares Biotechnology ETF lagged returns against current returns
Autocorrelation, which is IShares Biotechnology etf's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting IShares Biotechnology's etf expected returns. We can calculate the autocorrelation of IShares Biotechnology returns to help us make a trade decision. For example, suppose you find that IShares Biotechnology has exhibited high autocorrelation historically, and you observe that the etf is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
IShares Biotechnology regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If IShares Biotechnology etf is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if IShares Biotechnology etf is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in IShares Biotechnology etf over time.
Current vs Lagged Prices |
| Timeline |
IShares Biotechnology Lagged Returns
When evaluating IShares Biotechnology's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of IShares Biotechnology etf have on its future price. IShares Biotechnology autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, IShares Biotechnology autocorrelation shows the relationship between IShares Biotechnology etf current value and its past values and can show if there is a momentum factor associated with investing in iShares Biotechnology ETF.
Regressed Prices |
| Timeline |
IShares Biotechnology Implied Volatility | 27.56 |
IShares Biotechnology's implied volatility exposes the market's sentiment of iShares Biotechnology ETF stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if IShares Biotechnology'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 IShares Biotechnology stock will not fluctuate a lot when IShares Biotechnology'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 IShares Biotechnology 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, IShares Biotechnology's short interest history, or implied volatility extrapolated from IShares Biotechnology options trading.
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Try AI Portfolio ArchitectCheck out IShares Biotechnology Correlation, IShares Biotechnology Volatility and IShares Biotechnology Alpha and Beta module to complement your research on IShares Biotechnology. Note that the iShares Biotechnology ETF information on this page should be used as a complementary analysis to other IShares Biotechnology's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
IShares Biotechnology 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.