Energy Select Sector Etf Alpha and Beta Analysis
| XLE Etf | USD 93.96 0.72 0.77% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Energy Select Sector. It also helps investors analyze the systematic and unsystematic risks associated with investing in Energy Select over a specified time horizon. Remember, high Energy 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 Energy Select's market risk premium analysis include:
Beta 0.29 | Alpha 0.0228 | Risk 1.1 | Sharpe Ratio 0.0798 | Expected Return 0.0876 |
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.
Energy |
Energy Select Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Energy Select market risk premium is the additional return an investor will receive from holding Energy 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 Energy 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 Energy Select's performance over market.| α | 0.02 | β | 0.29 |
Energy 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 Energy Select's Buy-and-hold return. Our buy-and-hold chart shows how Energy Select performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Energy Select Market Price Analysis
Market price analysis indicators help investors to evaluate how Energy 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 Energy Select shares will generate the highest return on investment. By understating and applying Energy Select etf market price indicators, traders can identify Energy Select position entry and exit signals to maximize returns.
Energy Select Return and Market Media
The median price of Energy Select for the period between Mon, Oct 21, 2024 and Sun, Jan 19, 2025 is 89.53 with a coefficient of variation of 3.96. The daily time series for the period is distributed with a sample standard deviation of 3.56, arithmetic mean of 89.98, and mean deviation of 2.95. The Etf received a lot of media exposure during the period. Price Growth (%) |
| Timeline |
1 | Trumps Election How It Affects The Energy Sector | 11/08/2024 |
2 | Should You Invest in the Energy Select Sector SPDR ETF | 12/02/2024 |
3 | Energy Select Sector SPDR ETF declares quarterly distribution of 0.7000 | 12/23/2024 |
4 | UAE will require bigger companies to report carbon emissions | 12/26/2024 |
5 | Russian Natural Gas Delivery To Europe Halted US-Listed LNG Stocks Gain As Exports Set To Increase In 2025 | 01/02/2025 |
6 | Want More Passive Income in 2025 Consider This ETF and 2 Rock-Solid Dividend Stocks. | 01/07/2025 |
7 | Dollar Soars To 27-Month Highs, 30-Year Yields Hit 5, Stocks Tumble As Jobs Report, Oil Spike Darken Feds Interest Rate Cut Hopes | 01/10/2025 |
8 | Supreme Court allows climate lawsuits against oil companies to proceed | 01/13/2025 |
9 | US Energy Sector Enjoys Strong Start To 2025, Analysts Eye Constructive Setup For Chevron | 01/16/2025 |
10 | Oil Dips As Israeli Security Cabinet Approves Gaza Ceasefire, Yet Experts Warn Red Sea Risks Persist | 01/17/2025 |
About Energy 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 Energy or other etfs. Alpha measures the amount that position in Energy 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 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.
Build Portfolio with Energy 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 Energy Select Backtesting, Portfolio Optimization, Energy Select Correlation, Energy Select Hype Analysis, Energy Select Volatility, Energy Select History and analyze Energy Select Performance. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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.