Dow Jones Five Year Return vs. Cash Position Weight
| RYDKX Fund | USD 98.64 0.23 0.23% |
For Dow Jones profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dow Jones to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dow Jones Industrial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dow Jones's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dow Jones Industrial over time as well as its relative position and ranking within its peers.
Dow |
Dow Jones Industrial Cash Position Weight vs. Five Year Return Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Dow Jones's current stock value. Our valuation model uses many indicators to compare Dow Jones value to that of its competitors to determine the firm's financial worth. Dow Jones Industrial is rated top fund in five year return among similar funds. It also is rated top fund in cash position weight among similar funds creating about 1.00 of Cash Position Weight per Five Year Return. 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 Dow Jones' earnings, one of the primary drivers of an investment's value.Dow Cash Position Weight vs. Five Year Return
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.
Dow Jones |
| = | 9.21 % |
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.
Percentage of fund asset invested in cash equivalents or risk-free instruments. About 40% of all global funds carry cash on their balance sheet.
Dow Jones |
| = | 9.20 % |
Funds or ETFs that have over 40% of their value invested in low-risk instruments or cash equivalents typically attract conservative investors.
Dow Cash Position Weight Comparison
Dow Jones is currently under evaluation in cash position weight among similar funds.
Dow Jones Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Dow Jones, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dow Jones will eventually generate negative long term returns. The profitability progress is the general direction of Dow Jones' change in net profit over the period of time. It can combine multiple indicators of Dow Jones, 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 any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index. The Dow Jones Industrial Average is a price-weighted index of 30 blue chip U.S. stocks. The fund is non-diversified.
Dow Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Dow Jones. 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 Dow Jones 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 Dow Jones' important profitability drivers and their relationship over time.
Use Dow Jones 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 Dow Jones 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 Dow Jones will appreciate offsetting losses from the drop in the long position's value.Dow Jones Pair Trading
Dow Jones Industrial Pair Trading Analysis
The ability to find closely correlated positions to Dow Jones could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dow Jones 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 Dow Jones - 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 Dow Jones Industrial to buy it.
The correlation of Dow Jones 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 Dow Jones moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dow Jones Industrial 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 Dow Jones 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 Dow Jones position
In addition to having Dow Jones 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 Cars Thematic Idea Now
Cars
Domestic and international companies involved in manufacturing and serving automobiles and trucks. The Cars theme has 47 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 Cars Theme or any other thematic opportunities.
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Other Information on Investing in Dow Mutual Fund
To fully project Dow Jones' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dow Jones Industrial 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 Dow Jones' income statement, its balance sheet, and the statement of cash flows.
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