Energy Select Sector Etf Market Value
XLE Etf | USD 91.14 0.31 0.34% |
Symbol | Energy |
The market value of Energy Select Sector is measured differently than its book value, which is the value of Energy that is recorded on the company's balance sheet. Investors also form their own opinion of Energy Select's value that differs from its market value or its book value, called intrinsic value, which is Energy 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 Energy Select's market value can be influenced by many factors that don't directly affect Energy 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 Energy Select's value and its price as these two are different measures arrived at by different means. Investors typically determine if Energy Select is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Energy 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.
Energy 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 Energy 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 Energy Select.
03/25/2023 |
| 03/19/2024 |
If you would invest 0.00 in Energy Select on March 25, 2023 and sell it all today you would earn a total of 0.00 from holding Energy Select Sector or generate 0.0% return on investment in Energy Select over 360 days. Energy Select is related to or competes with Direxion Daily, Drum Income, EA Series, Global X, ETRACS Quarterly, Global X, and UBS AG. In seeking to track the performance of the index, the fund employs a replication strategy More
Energy 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 Energy 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 Energy Select Sector upside and downside potential and time the market with a certain degree of confidence.
Downside Deviation | 1.05 | |||
Information Ratio | 0.0596 | |||
Maximum Drawdown | 5.33 | |||
Value At Risk | (1.60) | |||
Potential Upside | 1.88 |
Energy Select Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Energy Select's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Energy Select's standard deviation. In reality, there are many statistical measures that can use Energy Select historical prices to predict the future Energy Select's volatility.Risk Adjusted Performance | 0.1266 | |||
Jensen Alpha | 0.0958 | |||
Total Risk Alpha | (0.03) | |||
Sortino Ratio | 0.0606 | |||
Treynor Ratio | 0.2598 |
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Energy 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. Please use the tools below to analyze the current value of Energy Select in the context of predictive analytics.
Energy Select Sector Backtested Returns
We consider Energy Select very steady. Energy Select Sector secures Sharpe Ratio (or Efficiency) of 0.14, which denotes the etf had 0.14% return per unit of risk over the last 3 months. Our standpoint towards predicting the volatility of an etf is to use all available market data together with etf-specific technical indicators that cannot be diversified away. We have found twenty-nine technical indicators for Energy Select Sector, which you can use to evaluate the future volatility of the entity. Please confirm Energy Select's Coefficient Of Variation of 515.96, mean deviation of 0.8105, and Downside Deviation of 1.05 to check if the risk estimate we provide is consistent with the expected return of 0.15%. The etf shows a Beta (market volatility) of 0.76, which means possible diversification benefits within a given portfolio. As returns on the market increase, Energy Select returns are expected to increase less than the market. However, during the bear market, the loss on holding Energy Select will be expected to be smaller as well. Although it is important to respect Energy Select Sector historical returns, it is better to be realistic regarding the information on the equity's current trending patterns.
Auto-correlation | 0.40 |
Average predictability
Energy Select Sector has average predictability. Overlapping area represents the amount of predictability between Energy Select time series from 25th of March 2023 to 21st of September 2023 and 21st of September 2023 to 19th of March 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 Energy Select Sector price movement. The serial correlation of 0.4 indicates that just about 40.0% of current Energy Select price fluctuation can be explain by its past prices.
Correlation Coefficient | 0.4 | |
Spearman Rank Test | -0.15 | |
Residual Average | 0.0 | |
Price Variance | 7.8 |
Energy Select Sector lagged returns against current returns
Autocorrelation, which is Energy 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 Energy Select's etf expected returns. We can calculate the autocorrelation of Energy Select returns to help us make a trade decision. For example, suppose you find that Energy Select etf has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the stock movement to match the lagging time series.
Current and Lagged Values |
Timeline |
Energy 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 Energy Select etf is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Energy Select etf is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Energy Select etf over time.
Current vs Lagged Prices |
Timeline |
Energy Select Lagged Returns
When evaluating Energy Select's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Energy Select etf have on its future price. Energy 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, Energy Select autocorrelation shows the relationship between Energy Select etf current value and its past values and can show if there is a momentum factor associated with investing in Energy Select Sector.
Regressed Prices |
Timeline |
Energy Select Implied Volatility | 25.51 |
Energy Select's implied volatility exposes the market's sentiment of Energy Select Sector stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Energy 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 Energy Select stock will not fluctuate a lot when Energy 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 Energy 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, Energy Select's short interest history, or implied volatility extrapolated from Energy Select options trading.
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Check out Energy Select Correlation, Energy Select Volatility and Energy Select Alpha and Beta module to complement your research on Energy Select. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Complementary Tools for Energy Etf analysis
When running Energy Select's price analysis, check to measure Energy Select's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Energy Select is operating at the current time. Most of Energy Select's value examination focuses on studying past and present price action to predict the probability of Energy Select's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Energy Select's price. Additionally, you may evaluate how the addition of Energy Select to your portfolios can decrease your overall portfolio volatility.
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Energy 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.