Basic Materials Price To Book vs. Cash Position Weight
| RYBMX Fund | USD 80.32 0.06 0.07% |
For Basic Materials profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Basic Materials to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Basic Materials Fund utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Basic Materials's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Basic Materials Fund over time as well as its relative position and ranking within its peers.
Basic |
Basic Materials Cash Position Weight vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Basic Materials's current stock value. Our valuation model uses many indicators to compare Basic Materials value to that of its competitors to determine the firm's financial worth. Basic Materials Fund is rated below average in price to book among similar funds. It is rated top fund in cash position weight among similar funds creating about 2.47 of Cash Position Weight per Price To Book. 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 Basic Materials' earnings, one of the primary drivers of an investment's value.Basic Cash Position Weight 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.
Basic Materials |
| = | 1.36 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.
Percentage of fund asset invested in cash equivalents or risk-free instruments. About 40% of all global funds carry cash on their balance sheet.
Basic Materials |
| = | 3.36 % |
Funds or ETFs that have over 40% of their value invested in low-risk instruments or cash equivalents typically attract conservative investors.
Basic Cash Position Weight Comparison
Basic Materials is currently under evaluation in cash position weight among similar funds.
Basic Materials Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Basic Materials, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Basic Materials will eventually generate negative long term returns. The profitability progress is the general direction of Basic Materials' change in net profit over the period of time. It can combine multiple indicators of Basic Materials, 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 invests substantially all of its net assets in equity securities of Basic Materials Companies that are traded in the United States and in derivatives. It may invest to a significant extent in the securities of Basic Materials Companies that have small to mid-sized capitalizations. Basic Materials Companies are engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrials sector, and may be involved in the production and transportation of metals, textiles, and wood products.
Basic Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Basic Materials. 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 Basic Materials 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 Basic Materials' important profitability drivers and their relationship over time.
Use Basic Materials 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 Basic Materials 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 Basic Materials will appreciate offsetting losses from the drop in the long position's value.Basic Materials Pair Trading
Basic Materials Fund Pair Trading Analysis
The ability to find closely correlated positions to Basic Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Basic Materials 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 Basic Materials - 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 Basic Materials Fund to buy it.
The correlation of Basic Materials 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 Basic Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Basic Materials 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 Basic Materials 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 Basic Materials position
In addition to having Basic Materials 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 Junk Bonds Funds Thematic Idea Now
Junk Bonds Funds
Funds or Etfs that invest most of their assets into speculative (junk) bonds or to other fixed income instruments with interest rates 3 to 4 percentage points above government issues. The Junk Bonds Funds theme has 38 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 Junk Bonds Funds Theme or any other thematic opportunities.
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Other Information on Investing in Basic Mutual Fund
To fully project Basic Materials' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Basic Materials 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 Basic Materials' income statement, its balance sheet, and the statement of cash flows.
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