Materials Select Sector Etf Market Value
| XLB Etf | USD 89.49 0.43 0.48% |
| Symbol | Materials |
The market value of Materials Select Sector is measured differently than its book value, which is the value of Materials that is recorded on the company's balance sheet. Investors also form their own opinion of Materials Select's value that differs from its market value or its book value, called intrinsic value, which is Materials 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 Materials Select's market value can be influenced by many factors that don't directly affect Materials 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 Materials Select's value and its price as these two are different measures arrived at by different means. Investors typically determine if Materials Select is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Materials 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.
Materials 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 Materials 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 Materials Select.
| 03/17/2024 |
| 04/16/2024 |
If you would invest 0.00 in Materials Select on March 17, 2024 and sell it all today you would earn a total of 0.00 from holding Materials Select Sector or generate 0.0% return on investment in Materials Select over 30 days. Materials Select is related to or competes with Industrial Select, Consumer Discretionary, Consumer Staples, Utilities Select, and Health Care. In seeking to track the performance of the index, the fund employs a replication strategy More
Materials 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 Materials 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 Materials Select Sector upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.9985 | |||
| Information Ratio | 0.0575 | |||
| Maximum Drawdown | 4.2 | |||
| Value At Risk | (1.41) | |||
| Potential Upside | 1.43 |
Materials Select Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Materials Select's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Materials Select's standard deviation. In reality, there are many statistical measures that can use Materials Select historical prices to predict the future Materials Select's volatility.| Risk Adjusted Performance | 0.0847 | |||
| Jensen Alpha | 0.0414 | |||
| Total Risk Alpha | 0.03 | |||
| Sortino Ratio | 0.0493 | |||
| Treynor Ratio | 0.0888 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Materials 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.
Materials Select Sector Backtested Returns
We consider Materials Select very steady. Materials Select Sector has Sharpe Ratio of 0.18, which conveys that the entity had a 0.18% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Materials Select, which you can use to evaluate the volatility of the etf. Please verify Materials Select's Downside Deviation of 0.9985, risk adjusted performance of 0.0847, and Mean Deviation of 0.6463 to check out if the risk estimate we provide is consistent with the expected return of 0.15%. The etf secures a Beta (Market Risk) of 1.15, which conveys a somewhat significant risk relative to the market. Materials Select returns are very sensitive to returns on the market. As the market goes up or down, Materials Select is expected to follow.
Auto-correlation | -0.73 |
Almost perfect reverse predictability
Materials Select Sector has almost perfect reverse predictability. Overlapping area represents the amount of predictability between Materials Select time series from 17th of March 2024 to 1st of April 2024 and 1st of April 2024 to 16th 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 Materials Select Sector price movement. The serial correlation of -0.73 indicates that around 73.0% of current Materials Select price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.73 | |
| Spearman Rank Test | -0.27 | |
| Residual Average | 0.0 | |
| Price Variance | 0.82 |
Materials Select Sector lagged returns against current returns
Autocorrelation, which is Materials 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 Materials Select's etf expected returns. We can calculate the autocorrelation of Materials Select returns to help us make a trade decision. For example, suppose you find that Materials 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 |
Materials 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 Materials Select etf is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Materials Select etf is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Materials Select etf over time.
Current vs Lagged Prices |
| Timeline |
Materials Select Lagged Returns
When evaluating Materials Select's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Materials Select etf have on its future price. Materials 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, Materials Select autocorrelation shows the relationship between Materials Select etf current value and its past values and can show if there is a momentum factor associated with investing in Materials Select Sector.
Regressed Prices |
| Timeline |
Materials Select Implied Volatility | 26.87 |
Materials Select's implied volatility exposes the market's sentiment of Materials Select Sector stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Materials 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 Materials Select stock will not fluctuate a lot when Materials 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 Materials 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, Materials Select's short interest history, or implied volatility extrapolated from Materials Select options trading.
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| LINK | Chainlink |
Check out Materials Select Correlation, Materials Select Volatility and Materials Select Alpha and Beta module to complement your research on Materials Select. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Materials 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.