Technology Select Correlations
| XLK Etf | USD 196.58 2.27 1.14% |
The correlation of Technology Select is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Technology Select moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Technology Select Sector moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Average diversification
The correlation between Technology Select Sector and NYA is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Technology Select Sector and NYA in the same portfolio, assuming nothing else is changed.
Technology |
The ability to find closely correlated positions to Technology Select could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Technology Select when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Technology Select - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Technology Select Sector to buy it.
Moving together with Technology Etf
| 0.87 | VGT | Vanguard Information | PairCorr |
| 0.97 | IYW | iShares Technology ETF | PairCorr |
| 0.75 | SMH | VanEck Semiconductor ETF | PairCorr |
| 0.79 | SOXX | iShares Semiconductor ETF | PairCorr |
| 0.87 | FTEC | Fidelity MSCI Information | PairCorr |
| 0.77 | FDN | First Trust Dow | PairCorr |
| 0.8 | IGM | iShares Expanded Tech | PairCorr |
| 0.79 | VTI | Vanguard Total Stock | PairCorr |
| 0.84 | SPY | SPDR SP 500 | PairCorr |
| 0.78 | IVV | iShares Core SP | PairCorr |
| 0.75 | VTV | Vanguard Value Index | PairCorr |
| 0.81 | VUG | Vanguard Growth Index | PairCorr |
| 0.76 | VO | Vanguard Mid Cap | PairCorr |
| 0.79 | VEA | Vanguard FTSE Developed Sell-off Trend | PairCorr |
| 0.84 | VB | Vanguard Small Cap | PairCorr |
| 0.69 | VWO | Vanguard FTSE Emerging | PairCorr |
Related Correlations Analysis
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Technology Select Constituents Risk-Adjusted Indicators
There is a big difference between Technology Etf performing well and Technology Select ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Technology Select's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.Be your own money manager
Our tools can tell you how much better you can do entering a position in Technology Select without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Already Invested in Technology Select Sector?
The danger of trading Technology Select Sector is mainly related to its market volatility and ETF specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Technology Select is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Technology Select. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Technology Select Sector is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
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 Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Technology Select Sector. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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.