Invesco Mortgage Return On Asset vs. Return On Equity
| IVR-PC Preferred Stock | USD 23.30 0.55 2.31% |
For Invesco Mortgage profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Invesco Mortgage to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Invesco Mortgage Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Invesco Mortgage's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Invesco Mortgage Capital over time as well as its relative position and ranking within its peers.
Invesco |
Invesco Mortgage Capital Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Invesco Mortgage's current stock value. Our valuation model uses many indicators to compare Invesco Mortgage value to that of its competitors to determine the firm's financial worth. Invesco Mortgage Capital is rated fifth overall in return on asset category among its peers. It also is rated fifth overall in return on equity category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Invesco Mortgage by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Invesco Mortgage's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Invesco Return On Equity vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Invesco Mortgage |
| = | -0.0717 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Invesco Mortgage |
| = | -0.45 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Invesco Return On Equity Comparison
Invesco Mortgage is currently under evaluation in return on equity category among its peers.
Invesco Mortgage Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Invesco Mortgage, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Invesco Mortgage will eventually generate negative long term returns. The profitability progress is the general direction of Invesco Mortgage's change in net profit over the period of time. It can combine multiple indicators of Invesco Mortgage, 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.
Invesco Mortgage Capital Inc. operates as a real estate investment trust that focuses on investing in, financing, and managing residential and commercial mortgage-backed securities, and other mortgage-related assets. Invesco Mortgage Capital Inc. was incorporated in 2008 and is headquartered in Atlanta, Georgia. INVESCO MORTGAGE operates under REIT - Diversified classification in USA and is traded on New York Stock Exchange.
Invesco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Invesco Mortgage. 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 Invesco Mortgage 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 Invesco Mortgage's important profitability drivers and their relationship over time.
Use Invesco Mortgage 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 Invesco Mortgage 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 Invesco Mortgage will appreciate offsetting losses from the drop in the long position's value.Invesco Mortgage Pair Trading
Invesco Mortgage Capital Pair Trading Analysis
The ability to find closely correlated positions to Invesco Mortgage could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Invesco Mortgage 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 Invesco Mortgage - 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 Invesco Mortgage Capital to buy it.
The correlation of Invesco Mortgage 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 Invesco Mortgage moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Invesco Mortgage Capital 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 Invesco Mortgage 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.Use Investing Themes to Complement your Invesco Mortgage position
In addition to having Invesco Mortgage 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.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas theme has 61 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 Petroleum and Natural Gas Theme or any other thematic opportunities.
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Other Information on Investing in Invesco Preferred Stock
To fully project Invesco Mortgage's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Invesco Mortgage Capital 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 Invesco Mortgage's income statement, its balance sheet, and the statement of cash flows.