APA Cash And Equivalents vs. Beta
| PJZ Stock | EUR 4.24 0.00 0.00% |
For APA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of APA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well APA Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between APA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of APA Group over time as well as its relative position and ranking within its peers.
APA |
APA Group Beta vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining APA's current stock value. Our valuation model uses many indicators to compare APA value to that of its competitors to determine the firm's financial worth. APA Group is regarded fifth in cash and equivalents category among its peers. It is regarded fourth in beta category among its peers . The ratio of Cash And Equivalents to Beta for APA Group is about 775,000,000 . 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 APA's earnings, one of the primary drivers of an investment's value.APA Beta vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
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| = | 93 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
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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| = | 0.12 |
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.
APA Beta Comparison
APA is currently under evaluation in beta category among its peers.
Beta Analysis
As returns on the market increase, APA's returns are expected to increase less than the market. However, during the bear market, the loss of holding APA is expected to be smaller as well.
APA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in APA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, APA will eventually generate negative long term returns. The profitability progress is the general direction of APA's change in net profit over the period of time. It can combine multiple indicators of APA, 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.
APA Group develops, owns, and operates natural gas transportation and energy infrastructure in Australia. It also provides commercial, operating, and asset maintenance services to its energy investments and third parties and invests in unlisted entities. APA operates under Utilities - Regulated Gas classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1700 people.
APA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on APA. 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 APA 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 APA's important profitability drivers and their relationship over time.
Use APA 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 APA 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 APA will appreciate offsetting losses from the drop in the long position's value.APA Pair Trading
APA Group Pair Trading Analysis
The ability to find closely correlated positions to APA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace APA 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 APA - 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 APA Group to buy it.
The correlation of APA 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 APA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if APA Group 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 APA 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 APA position
In addition to having APA 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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Other Information on Investing in APA Stock
To fully project APA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of APA Group 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 APA's income statement, its balance sheet, and the statement of cash flows.