Invesco Golden Price To Book vs. Beta
| PGJ Etf | USD 26.44 0.14 0.53% |
For Invesco Golden profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Invesco Golden to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Invesco Golden Dragon utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Invesco Golden's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Invesco Golden Dragon over time as well as its relative position and ranking within its peers.
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The market value of Invesco Golden Dragon is measured differently than its book value, which is the value of Invesco that is recorded on the company's balance sheet. Investors also form their own opinion of Invesco Golden's value that differs from its market value or its book value, called intrinsic value, which is Invesco Golden'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 Invesco Golden's market value can be influenced by many factors that don't directly affect Invesco Golden'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 Invesco Golden's value and its price as these two are different measures arrived at by different means. Investors typically determine if Invesco Golden is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Invesco Golden'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.
Invesco Golden Dragon Beta vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Invesco Golden's current stock value. Our valuation model uses many indicators to compare Invesco Golden value to that of its competitors to determine the firm's financial worth. Invesco Golden Dragon is regarded fourth largest ETF in price to book as compared to similar ETFs. It is regarded third largest ETF in beta as compared to similar ETFs totaling about 1.13 of Beta per Price To Book. Comparative valuation analysis is a catch-all technique that is used if you cannot value Invesco Golden 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.Invesco Beta vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
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| = | 1.15 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
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| = | 1.3 |
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.
Invesco Beta Comparison
Invesco Golden is regarded second largest ETF 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, Invesco Golden will likely underperform.
Invesco Golden Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Invesco Golden, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Invesco Golden will eventually generate negative long term returns. The profitability progress is the general direction of Invesco Golden's change in net profit over the period of time. It can combine multiple indicators of Invesco Golden, 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 generally will invest at least 90 percent of its total assets in the securities that comprise the underlying index. Golden Dragon is traded on NASDAQ Exchange in the United States.
Invesco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Invesco Golden. 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 Golden 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 Golden's important profitability drivers and their relationship over time.
Use Invesco Golden 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 Golden 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 Golden will appreciate offsetting losses from the drop in the long position's value.Invesco Golden Pair Trading
Invesco Golden Dragon Pair Trading Analysis
The ability to find closely correlated positions to Invesco Golden 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 Golden 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 Golden - 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 Golden Dragon to buy it.
The correlation of Invesco Golden 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 Golden moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Invesco Golden Dragon 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 Golden 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 Golden position
In addition to having Invesco Golden 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?
Run Large Value Funds Thematic Idea Now
Large Value Funds
Funds or Etfs that invest in the undervalued stocks of large-sized companies. The Large Value Funds theme has 37 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 Large Value Funds Theme or any other thematic opportunities.
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Check out Your Equity Center. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
To fully project Invesco Golden's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Invesco Golden Dragon 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 Golden's income statement, its balance sheet, and the statement of cash flows.