Materials Select Sector Etf Alpha and Beta Analysis
| XLB Etf | USD 85.58 1.05 1.24% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Materials Select Sector. It also helps investors analyze the systematic and unsystematic risks associated with investing in Materials Select over a specified time horizon. Remember, high Materials Select's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Materials Select's market risk premium analysis include:
Beta 0.71 | Alpha (0.17) | Risk 0.85 | Sharpe Ratio (0.18) | Expected Return (0.15) |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Materials |
Materials Select Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Materials Select market risk premium is the additional return an investor will receive from holding Materials Select long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Materials Select. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Materials Select's performance over market.| α | -0.17 | β | 0.71 |
Materials Select expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Materials Select's Buy-and-hold return. Our buy-and-hold chart shows how Materials Select performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Materials Select Market Price Analysis
Market price analysis indicators help investors to evaluate how Materials Select etf reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Materials Select shares will generate the highest return on investment. By understating and applying Materials Select etf market price indicators, traders can identify Materials Select position entry and exit signals to maximize returns.
Materials Select Return and Market Media
The median price of Materials Select for the period between Mon, Sep 23, 2024 and Sun, Dec 22, 2024 is 94.42 with a coefficient of variation of 2.98. The daily time series for the period is distributed with a sample standard deviation of 2.79, arithmetic mean of 93.65, and mean deviation of 2.04. The Etf received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Seeking Alphas top Quant picks in Materials sector as Q3 earnings approaches - MSN | 10/08/2024 |
2 | Should You Invest in the iShares U.S. Basic Materials ETF | 10/30/2024 |
3 | XLB, SHW, APD, ECL ETF Inflow Alert - Nasdaq | 11/15/2024 |
4 | Should You Invest in the Vanguard Materials ETF | 11/25/2024 |
5 | Dow Partners With Macquarie In Gulf Coast Infrastructure Play, Retains Strategic Control | 12/09/2024 |
6 | Leading And Lagging Sectors For December 20, 2024 | 12/20/2024 |
About Materials Select Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Materials or other etfs. Alpha measures the amount that position in Materials Select Sector has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
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.
Build Portfolio with Materials Select
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Materials Select Backtesting, Portfolio Optimization, Materials Select Correlation, Materials Select Hype Analysis, Materials Select Volatility, Materials Select History and analyze Materials Select Performance. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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.