Technology Select Three Year Return vs. Beta

XLK Etf  USD 235.96  3.47  1.49%   
Based on Technology Select's profitability indicators, Technology Select Sector may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Technology Select's ability to earn profits and add value for shareholders.
For Technology Select profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Technology Select to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Technology Select Sector utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Technology Select's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Technology Select Sector over time as well as its relative position and ranking within its peers.
  
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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 Sector Beta vs. Three Year Return Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Technology Select's current stock value. Our valuation model uses many indicators to compare Technology Select value to that of its competitors to determine the firm's financial worth.
Technology Select Sector is rated first in three year return as compared to similar ETFs. It is rated first in beta as compared to similar ETFs totaling about  0.09  of Beta per Three Year Return. The ratio of Three Year Return to Beta for Technology Select Sector is roughly  10.81 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Technology Select by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Technology Beta vs. Three Year Return

Tree Year Return shows the total annualized return generated from holding a fund or ETFs for the last three years. The return measure includes capital appreciation, losses, dividends paid, and all capital gains distributions. This return indicator is considered by many investors to be solid measures of fund mid-term performance.

Technology Select

Three Year Return

 = 

(Mean of Monthly Returns - 1)

X

100%

 = 
13.40 %
Although Three Year Fund Return indicator can give a sense of overall fund mid-term potential, it is recommended to compare fund performances against other similar funds, ETFs, or market benchmarks for the same 3 year interval.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Technology Select

Beta

 = 

Covariance

Variance

 = 
1.24
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Technology Beta Comparison

Technology Select is currently under evaluation in beta as compared to similar ETFs.

Beta Analysis

As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Technology Select will likely underperform.

Technology Select Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Technology Select, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Technology Select will eventually generate negative long term returns. The profitability progress is the general direction of Technology Select's change in net profit over the period of time. It can combine multiple indicators of Technology Select, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
In seeking to track the performance of the index, the fund employs a replication strategy, which means that the fund typically invests in substantially all of the securities represented in the index in approximately the same proportions as the index. SP 500 is traded on NYSEARCA Exchange in the United States.

Technology Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Technology Select. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Technology Select position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Technology Select's important profitability drivers and their relationship over time.

Use Technology Select in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Technology Select position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Technology Select will appreciate offsetting losses from the drop in the long position's value.

Technology Select Pair Trading

Technology Select Sector Pair Trading Analysis

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.
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.
Correlation analysis and pair trading evaluation for Technology Select can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Technology Select position

In addition to having Technology Select in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run SPAC Thematic Idea Now

SPAC
SPAC Theme
Entities that are involved in raising capital, merging with and acquiring companies, and investing in private equity through leveraged buyouts. The SPAC theme has 25 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize SPAC Theme or any other thematic opportunities.
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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:
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You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project Technology Select's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Technology Select Sector at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Technology Select's income statement, its balance sheet, and the statement of cash flows.
Potential Technology Select investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Technology Select investors may work on each financial statement separately, they are all related. The changes in Technology Select's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Technology Select's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.