Global X Video GLOBAL Bond
| HERO Etf | USD 23.84 0.20 0.85% |
Global X Video holds a debt-to-equity ratio of 0.8. With a high degree of financial leverage come high-interest payments, which usually reduce Global X's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Global X's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Global X's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the ETF is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Global Etf's retail investors understand whether an upcoming fall or rise in the market will negatively affect Global X's stakeholders.
For most companies, including Global X, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Global X Video, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Global X's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Global |
Given the importance of Global X's capital structure, the first step in the capital decision process is for the management of Global X to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Global X Video to issue bonds at a reasonable cost.
| Popular Name | Global X GLOBAL PARTNERS LP |
| Equity ISIN Code | US37954Y3927 |
| Bond Issue ISIN Code | US37954FAG90 |
Global X Video Outstanding Bond Obligations
| GLOBAL PARTNERS LP | US37954FAG90 | Details | |
| US37954FAJ30 | US37954FAJ30 | Details | |
| US37959EAA01 | US37959EAA01 | Details | |
| GL 48 15 JUN 32 | US37959EAB83 | Details | |
| MPLX LP 52 | US55336VAL45 | Details | |
| US37959GAA58 | US37959GAA58 | Details | |
| US37959GAC15 | US37959GAC15 | Details | |
| GBLATL 3125 15 JUN 31 | US37959GAB32 | Details |
Understaning Global X Use of Financial Leverage
Leverage ratios show Global X's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Global X's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
The fund invests at least 80 percent of its total assets in the securities of the underlying index and in American Depositary Receipts and Global Depositary Receipts based on the securities in the underlying index. Gx Video is traded on NASDAQ Exchange in the United States. Please read more on our technical analysis page.
Pair Trading with Global X
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 Global X 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 Global X will appreciate offsetting losses from the drop in the long position's value.Moving together with Global Etf
| 0.63 | VOX | Vanguard Communication | PairCorr |
| 0.64 | FCOM | Fidelity MSCI Commun | PairCorr |
| 0.65 | ESPO | VanEck Video Gaming | PairCorr |
Moving against Global Etf
| 0.6 | HUM | Humana Inc Fiscal Year End 23rd of January 2025 | PairCorr |
| 0.55 | FNGD | MicroSectors FANG Index | PairCorr |
The ability to find closely correlated positions to Global X could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Global X 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 Global X - 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 Global X Video to buy it.
The correlation of Global X 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 Global X moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Global X Video 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 Global X 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.Check out the analysis of Global X Fundamentals Over Time. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
The market value of Global X Video is measured differently than its book value, which is the value of Global that is recorded on the company's balance sheet. Investors also form their own opinion of Global X's value that differs from its market value or its book value, called intrinsic value, which is Global X'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 Global X's market value can be influenced by many factors that don't directly affect Global X'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 Global X's value and its price as these two are different measures arrived at by different means. Investors typically determine if Global X is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Global X'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.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.