Morningstar Municipal One Year Return vs. Three Year Return

MSTPX Fund  USD 10.10  0.01  0.1%   
Taking into consideration Morningstar Municipal's profitability measurements, Morningstar Municipal Bond may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Morningstar Municipal's ability to earn profits and add value for shareholders.
For Morningstar Municipal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Morningstar Municipal to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Morningstar Municipal Bond utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Morningstar Municipal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Morningstar Municipal Bond over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between Morningstar Municipal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Morningstar Municipal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Morningstar Municipal'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.

Morningstar Municipal Three Year Return vs. One Year Return Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Morningstar Municipal's current stock value. Our valuation model uses many indicators to compare Morningstar Municipal value to that of its competitors to determine the firm's financial worth.
Morningstar Municipal Bond is number one fund in one year return among similar funds. It also is number one fund in three year return among similar funds reporting about  0.08  of Three Year Return per One Year Return. The ratio of One Year Return to Three Year Return for Morningstar Municipal Bond is roughly  12.62 . 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 Municipal's earnings, one of the primary drivers of an investment's value.

Morningstar Three Year Return vs. One Year Return

One Year Return is the annualized return generated from holding a security for exactly 12 months. The measure is considered to be good short-term measures of fund performance. In other words, it represents the capital appreciation of fund investments over the last year. However when the market is volatile such as in recent years, One Year Return measure can be misleading.

Morningstar Municipal

One Year Return

 = 

(Mean of Monthly Returns - 1)

X

100%

 = 
6.48 %
Although One Year Fund Return indicator can give a sense of overall fund short-term potential, it is recommended to look at mid and long term return measure before selecting a particular fund or ETF. The great way to validate fund short-term performance is to compare it with other similar funds or ETFs for the same 12 months interval.
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.

Morningstar Municipal

Three Year Return

 = 

(Mean of Monthly Returns - 1)

X

100%

 = 
0.51 %
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.

Morningstar Three Year Return Comparison

Morningstar Municipal is currently under evaluation in three year return among similar funds.

Morningstar Municipal Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Morningstar Municipal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Morningstar Municipal will eventually generate negative long term returns. The profitability progress is the general direction of Morningstar Municipal's change in net profit over the period of time. It can combine multiple indicators of Morningstar Municipal, 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 invest at least 80 percent of its net assets, plus borrowings for investment purposes, in securities of municipal issuers within the United States and its territories, the income of which is exempt from U.S. taxation. The Advisor intends to invest primarily in investment-grade municipal securities. The fund may also invest in derivatives, including options, futures, swaps, and inverse floating-rate debt instruments , for risk management purposes or as part of its investment strategies.

Morningstar Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Morningstar Municipal. 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 Municipal 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 Municipal's important profitability drivers and their relationship over time.

Use Morningstar Municipal 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 Municipal 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 Municipal will appreciate offsetting losses from the drop in the long position's value.

Morningstar Municipal Pair Trading

Morningstar Municipal Bond Pair Trading Analysis

The ability to find closely correlated positions to Morningstar Municipal 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 Municipal 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 Municipal - 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 Municipal Bond to buy it.
The correlation of Morningstar Municipal 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 Municipal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Morningstar Municipal 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 Municipal 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 Morningstar Municipal position

In addition to having Morningstar Municipal 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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Obamacare Repeal
Obamacare Repeal Theme
Healthcare and drug manufacturing companies that will most likely be affected by the final stages of Obamacare repeal. The Obamacare Repeal theme has 56 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 Obamacare Repeal Theme or any other thematic opportunities.
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Other Information on Investing in Morningstar Mutual Fund

To fully project Morningstar Municipal's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Morningstar Municipal 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 Municipal's income statement, its balance sheet, and the statement of cash flows.
Potential Morningstar Municipal investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Morningstar Municipal investors may work on each financial statement separately, they are all related. The changes in Morningstar Municipal's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Morningstar Municipal'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.
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