Investors considering the Kelly Strategic ETF (RESI) should note that the fund primarily targets the U.S. and Canada residential and apartment real estate sector, offering a specialized focus for those looking to capitalize on this particular market segment. With an asset under management of approximately
$972,000, RESI demonstrates a more concentrated investment approach, which could appeal to investors with a specific interest in real estate. The fund's recent performance shows a price percent change of
4.53%, indicating a positive trend, but investors should be cautious and consider the inherent volatility within the real estate market before deciding to short this ETF. As of the last update, the ETF's last price stood at
$60, reflecting a variance of
3.67 from its low price of
$59.22, suggesting a relatively stable price movement in the short term. Given these factors, investors should weigh the fund's sector-specific risks against their individual investment strategies and market outlook before shorting RESI or any other real estate-focused fund.
Important Takeaways
By examining the fundamental indicators of Kelly Strategic ETF and Fundamental, we can compare the impact of market volatility on the prices of both entities and determine whether they can mitigate market risk when combined in a single portfolio. Additionally, investors can employ pair trading strategies by taking a long position in Fundamental and a short position in Kelly Strategic. For further details, please visit our pair correlation module.
Let us now turn our attention to the analysis of assets. The asset utilization ratio is a measure of the revenue generated for every dollar of assets reported by a company. Kelly Strategic ETF has an asset utilization ratio of 80,398.94 percent, which indicates that the ETF earns $803.99 for every dollar of assets. An increase in asset utilization suggests that Kelly Strategic ETF is becoming more efficient in using its assets for daily operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Kelly or RLJ is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Kelly Strategic's Liquidity
Kelly Strategic
financial leverage refers to using borrowed capital as a funding source to finance Kelly Strategic Management ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kelly Strategic financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Kelly Strategic's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Kelly Strategic's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Kelly Strategic's total debt and its cash.
Correlation Between Kelly and RLJ Lodging Trust
In general, Etf analysis is a method for investors and traders to make individual buying and selling decisions. Etf correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Kelly Strategic together with similar or unrelated positions with a negative correlation. For example, you can also add RLJ Lodging to your portfolio. If RLJ Lodging is not perfectly correlated to Kelly Strategic it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Kelly Strategic, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Kelly Strategic and RLJ Lodging in your portfolio? Please note if you are using this as a pair-trade strategy between Kelly Strategic and RLJ Lodging, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between RESI and RLJ for more information.
Another Deeper Perspective
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Kelly Strategic revenue. Based on the latest financial disclosure, Kelly Strategic ETF reported 218.46
M of revenue. This is much higher than that of the Strategic family and significantly higher than that of the
Real Estate category. The revenue for all United States etfs is notably lower than that of the entity.
As for Fundamental Income we see revenue of 409.59
M, which is much higher than that of the Real Estate
| Kelly | 218.46 Million |
| Sector | 0.0 |
| Fundamental | 409.59 Million |
In the world of investment, Warren Buffett's wisdom that "Risk comes from not knowing what you're doing" is particularly pertinent when considering whether to short an ETF like Kelly Strategic ETF (RESI) or Fundamental Income First. With a market capitalization of **$974.54 million** and assets under management at **$972,000.00**, RESI presents a unique profile for investors. The ETF's focus on the Strategic Residential & Apartment Real Estate Sector Index, coupled with a high market concentration in developed markets, suggests a specialized investment approach. However, investors should be cautious, as the ETF has experienced a year-to-date return of -1.90% and a negative return on assets of -0.16%. With a high probability of bankruptcy at 51.00% and a significant total debt of $1.62 billion, the
financial health of RESI could be concerning. The ETF's operating margin stands at a robust 34.78%, and with a cash flow from operations of $27.2 million, there are signs of operational efficiency. Before considering a short position, investors should weigh these factors against the ETF's current valuation of $2.49 billion and a price to sales ratio of 4.46X to determine if the potential upside of 3.08% is worth the risk. .
Our perspective of the recent Kelly Strategic surge
The recent statistical analysis of the Kelly Strategic ETF has revealed a kurtosis of 7.11, indicating a distribution of returns that is significantly more peaked than the normal distribution. This high level of kurtosis suggests that the ETF has experienced infrequent but substantial extreme returns. Such a characteristic can be seen as a double-edged sword for investors. On one hand, the potential for outsized gains may appeal to those with a higher risk tolerance, who are looking to capitalize on the pronounced movements of the ETF. On the other hand, the increased kurtosis also signals a greater risk of extreme losses, which could dissuade more conservative investors. Given the surge in the Kelly Strategic ETF's performance, it is imperative for investors to assess their risk appetite and the potential for heavy-tailed events before making any investment decisions. As of December 2nd, the Kelly Strategic ETF reports a Standard Deviation of 1.91, a risk-adjusted performance of (0.033142), and a Mean Deviation of 1.26. In relation to fundamental indicators, the
technical analysis model allows you to examine the existing technical drivers of the Kelly Strategic ETF, as well as their interrelationships. Specifically, this information can be used to determine whether the ETF will likely follow its historical price patterns, or if the prices are expected to revert.
We have the capability to interpolate and analyze thirteen technical drivers for Kelly Strategic, which can be compared with its industry peers. It is advisable to verify the Kelly Strategic ETF's information ratio and skewness to determine if the ETF is priced accurately, reflecting the market's valuation of its recent share price of $60.00. In conclusion, the Kelly Strategic ETF (RESI) stands at a pivotal point as we move through 2023. With its focus on the North American residential and apartment real estate sector, the ETF offers investors exposure to a specific slice of the developed markets. Despite a modest year-to-date return of -1.90%, the fund's adherence to a passive management approach designed to track the performance of its underlying index may appeal to those looking for sector-specific investments. However, investors should be mindful of the fund's non-diversified nature and a management fee of 0.68%. With assets under management standing at **$972,000.00**, and the ETF's 200-day moving average at **$10.2895**, the market's valuation hype and real value estimates at 60 and $42.34 respectively, suggest a cautious optimism. While the analyst highest estimated target price reaches an ambitious $20.2 million, the
analyst consensus holds at 3, indicating a neutral stance. As always, investors should consider their own risk tolerance and investment goals before making decisions, especially in a sector that can be influenced by a variety of economic factors. .
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Kelly Strategic Management. Please refer to our
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