Select Sector Five Year Return vs. Price To Book
| XLV Etf | MXN 2,849 16.65 0.58% |
For Select Sector profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Select Sector to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The Select Sector utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Select Sector's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The Select Sector over time as well as its relative position and ranking within its peers.
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Select Sector Price To Book vs. Five Year Return Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Select Sector's current stock value. Our valuation model uses many indicators to compare Select Sector value to that of its competitors to determine the firm's financial worth. The Select Sector is rated below average in five year return as compared to similar ETFs. It also is rated below average in price to book as compared to similar ETFs fabricating about 0.35 of Price To Book per Five Year Return. The ratio of Five Year Return to Price To Book for The Select Sector is roughly 2.88 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Select Sector by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Select Sector's Etf. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Select Price To Book 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.
Select Sector |
| = | 8.61 % |
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.
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.
Select Sector |
| = | 2.99 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.
Select Price To Book Comparison
Select Sector is rated below average in price to book as compared to similar ETFs.
Select Sector Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Select Sector, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Select Sector will eventually generate negative long term returns. The profitability progress is the general direction of Select Sector's change in net profit over the period of time. It can combine multiple indicators of Select Sector, 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 investment seeks investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Health Care Select Sector Index. SELECT SECTOR is traded on Mexico Stock Exchange in Mexico.
Select Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Select Sector. 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 Select Sector 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 Select Sector's important profitability drivers and their relationship over time.
Use Select Sector 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 Select Sector 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 Select Sector will appreciate offsetting losses from the drop in the long position's value.Select Sector Pair Trading
The Select Sector Pair Trading Analysis
The ability to find closely correlated positions to Select Sector could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Select Sector 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 Select Sector - 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 The Select Sector to buy it.
The correlation of Select Sector 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 Select Sector moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Select Sector 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 Select Sector 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 Select Sector position
In addition to having Select Sector 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 Music and Video Thematic Idea Now
Music and Video
Companies specializing in music, video and movie production and distribution. The Music and Video theme has 36 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 Music and Video Theme or any other thematic opportunities.
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Other Information on Investing in Select Etf
To fully project Select Sector's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Select Sector 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 Select Sector's income statement, its balance sheet, and the statement of cash flows.