Technology Select Sector Etf Market Value
| XLK Etf | USD 194.25 1.72 0.89% |
| Symbol | Technology |
The market value of Technology Select Sector is measured differently than its book value, which is the value of Technology that is recorded on the company's balance sheet. Investors also form their own opinion of Technology Select's value that differs from its market value or its book value, called intrinsic value, which is Technology Select'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 Technology Select's market value can be influenced by many factors that don't directly affect Technology Select'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 Technology Select's value and its price as these two are different measures arrived at by different means. Investors typically determine if Technology Select is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Technology Select'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.
Technology Select '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 Technology Select'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 Technology Select.
| 01/24/2024 |
| 04/23/2024 |
If you would invest 0.00 in Technology Select on January 24, 2024 and sell it all today you would earn a total of 0.00 from holding Technology Select Sector or generate 0.0% return on investment in Technology Select over 90 days. Technology Select is related to or competes with First Trust, Direxion Daily, Drum Income, and EA Series. In seeking to track the performance of the index, the fund employs a replication strategy, which means that the fund typ... More
Technology Select 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 Technology Select'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 Technology Select Sector upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.11) | |||
| Maximum Drawdown | 5.73 | |||
| Value At Risk | (1.90) | |||
| Potential Upside | 1.82 |
Technology Select Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Technology Select's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Technology Select's standard deviation. In reality, there are many statistical measures that can use Technology Select historical prices to predict the future Technology Select's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.19) | |||
| Treynor Ratio | (0.17) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Technology Select'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.
Technology Select Sector Backtested Returns
Technology Select Sector owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.054, which indicates the etf had a -0.054% return per unit of risk over the last 3 months. Technology Select Sector exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Technology Select's Risk Adjusted Performance of (0.02), variance of 1.3, and Coefficient Of Variation of (3,111) to confirm the risk estimate we provide. The entity has a beta of 0.27, which indicates not very significant fluctuations relative to the market. As returns on the market increase, Technology Select's returns are expected to increase less than the market. However, during the bear market, the loss of holding Technology Select is expected to be smaller as well.
Auto-correlation | -0.54 |
Good reverse predictability
Technology Select Sector has good reverse predictability. Overlapping area represents the amount of predictability between Technology Select time series from 24th of January 2024 to 9th of March 2024 and 9th of March 2024 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 Technology Select Sector price movement. The serial correlation of -0.54 indicates that about 54.0% of current Technology Select price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.54 | |
| Spearman Rank Test | -0.23 | |
| Residual Average | 0.0 | |
| Price Variance | 23.51 |
Technology Select Sector lagged returns against current returns
Autocorrelation, which is Technology Select 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 Technology Select's etf expected returns. We can calculate the autocorrelation of Technology Select returns to help us make a trade decision. For example, suppose you find that Technology Select 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 |
Technology Select 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 Technology Select etf is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Technology Select etf is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Technology Select etf over time.
Current vs Lagged Prices |
| Timeline |
Technology Select Lagged Returns
When evaluating Technology Select's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Technology Select etf have on its future price. Technology Select 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, Technology Select autocorrelation shows the relationship between Technology Select etf current value and its past values and can show if there is a momentum factor associated with investing in Technology Select Sector.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Technology Select Sector is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Technology Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Technology Select Sector Etf. Highlighted below are key reports to facilitate an investment decision about Technology Select Sector Etf:Check out Technology Select Correlation, Technology Select Volatility and Technology Select Alpha and Beta module to complement your research on Technology Select. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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.