Morningstar Defensive Equity Positions Weight vs. Five Year Return
| MSTBX Fund | USD 9.69 0.03 0.31% |
For Morningstar Defensive profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Morningstar Defensive to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Morningstar Defensive Bond utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Morningstar Defensive's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Morningstar Defensive Bond over time as well as its relative position and ranking within its peers.
Morningstar |
Morningstar Defensive Five Year Return vs. Equity Positions Weight Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Morningstar Defensive's current stock value. Our valuation model uses many indicators to compare Morningstar Defensive value to that of its competitors to determine the firm's financial worth. Morningstar Defensive Bond is number one fund in equity positions weight among similar funds. It also is number one fund in five year return among similar funds reporting about 7.88 of Five Year Return per Equity Positions Weight. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Morningstar Defensive's earnings, one of the primary drivers of an investment's value.Morningstar Five Year Return vs. Equity Positions Weight
Percentage of fund asset invested in equity instruments. About 80% of global funds and ETFs carry equity instruments on their balance sheet.
Morningstar Defensive |
| = | 0.31 % |
Funds with most asset allocated to stocks can be subclassified into many different categories such as market capitalization or investment style.
Five Year Return is considered one of the best measures to evaluate fund performance, especially from the mid and long term perspective. It shows the total annualized return generated from holding equity for the last five years and represents capital appreciation of the investment, including all dividends, losses, and capital gains distributions.
Morningstar Defensive |
| = | 2.44 % |
Although Five Year Returns can give a sense of overall investment potential, it is recommended to compare equity performance with similar assets for the same five year time interval. Similarly, comparing overall investment performance over the last five years with the appropriate market index is a great way to determine how this equity instrument will perform during unforeseen market fluctuations.
Morningstar Five Year Return Comparison
Morningstar Defensive is currently under evaluation in five year return among similar funds.
Morningstar Defensive Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Morningstar Defensive, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Morningstar Defensive will eventually generate negative long term returns. The profitability progress is the general direction of Morningstar Defensive's change in net profit over the period of time. It can combine multiple indicators of Morningstar Defensive, 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.
The fund will normally invest at least 80 percent of its assets in a diversified portfolio of debt securities of varying maturity, duration, and quality. Under normal conditions, the advisor intends to pursue a defensive strategy of limiting its interest-rate sensitivity by maintaining a portfolio duration of three years or less. In most market environments, the fund will not invest more than 20 percent of assets in fixed-income securities that are rated below investment grade , or if unrated, are determined by the funds subadviser to be of comparable quality.
Morningstar Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Morningstar Defensive. 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 Morningstar Defensive 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 Morningstar Defensive's important profitability drivers and their relationship over time.
Use Morningstar Defensive 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 Morningstar Defensive 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 Morningstar Defensive will appreciate offsetting losses from the drop in the long position's value.Morningstar Defensive Pair Trading
Morningstar Defensive Bond Pair Trading Analysis
The ability to find closely correlated positions to Morningstar Defensive could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Morningstar Defensive 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 Morningstar Defensive - 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 Morningstar Defensive Bond to buy it.
The correlation of Morningstar Defensive 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 Morningstar Defensive moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Morningstar Defensive 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 Morningstar Defensive 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 Morningstar Defensive position
In addition to having Morningstar Defensive 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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Macroaxis Index
An experimental equal-weighted index theme of selected equities generated based on Macroaxis rating and scoring system. The Macroaxis Index theme has 52 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 Macroaxis Index Theme or any other thematic opportunities.
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Other Information on Investing in Morningstar Mutual Fund
To fully project Morningstar Defensive's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Morningstar Defensive 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 Morningstar Defensive's income statement, its balance sheet, and the statement of cash flows.
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