SPDR SSGA Price To Book vs. Beta
| SMLV Etf | USD 135.85 0.73 0.53% |
For SPDR SSGA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SPDR SSGA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SPDR SSGA Small utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SPDR SSGA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SPDR SSGA Small over time as well as its relative position and ranking within its peers.
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The market value of SPDR SSGA Small is measured differently than its book value, which is the value of SPDR that is recorded on the company's balance sheet. Investors also form their own opinion of SPDR SSGA's value that differs from its market value or its book value, called intrinsic value, which is SPDR SSGA'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 SPDR SSGA's market value can be influenced by many factors that don't directly affect SPDR SSGA'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 SPDR SSGA's value and its price as these two are different measures arrived at by different means. Investors typically determine if SPDR SSGA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SPDR SSGA'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.
SPDR SSGA Small Beta vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SPDR SSGA's current stock value. Our valuation model uses many indicators to compare SPDR SSGA value to that of its competitors to determine the firm's financial worth. SPDR SSGA Small is presently regarded as number one ETF in price to book as compared to similar ETFs. It also is presently regarded as number one ETF in beta as compared to similar ETFs totaling about 0.46 of Beta per Price To Book. The ratio of Price To Book to Beta for SPDR SSGA Small is roughly 2.16 . Comparative valuation analysis is a catch-all technique that is used if you cannot value SPDR SSGA 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.SPDR 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.
SPDR SSGA |
| = | 1.84 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.
SPDR SSGA |
| = | 0.85 |
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.
SPDR Beta Comparison
SPDR SSGA is currently under evaluation in beta as compared to similar ETFs.
Beta Analysis
SPDR SSGA returns are very sensitive to returns on the market. As the market goes up or down, SPDR SSGA is expected to follow.
SPDR SSGA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in SPDR SSGA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SPDR SSGA will eventually generate negative long term returns. The profitability progress is the general direction of SPDR SSGA's change in net profit over the period of time. It can combine multiple indicators of SPDR SSGA, 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 invests substantially all, but at least 80, of its total assets in the securities comprising the index. SSGA US is traded on NYSEARCA Exchange in the United States.
SPDR Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SPDR SSGA. 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 SPDR SSGA 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 SPDR SSGA's important profitability drivers and their relationship over time.
Use SPDR SSGA 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 SPDR SSGA 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 SPDR SSGA will appreciate offsetting losses from the drop in the long position's value.SPDR SSGA Pair Trading
SPDR SSGA Small Pair Trading Analysis
The ability to find closely correlated positions to SPDR SSGA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SPDR SSGA 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 SPDR SSGA - 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 SPDR SSGA Small to buy it.
The correlation of SPDR SSGA 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 SPDR SSGA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SPDR SSGA Small 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 SPDR SSGA 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 SPDR SSGA position
In addition to having SPDR SSGA 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 Electronics Thematic Idea Now
Electronics
Companies manufacturing electronic appliances and goods. The Electronics theme has 39 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 Electronics Theme or any other thematic opportunities.
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Check out World Market Map. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
To fully project SPDR SSGA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SPDR SSGA Small 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 SPDR SSGA's income statement, its balance sheet, and the statement of cash flows.