LG Chem Shares Outstanding vs. Beta
| 051915 Stock | 190,000 13,500 6.63% |
For LG Chem profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LG Chem to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LG Chem utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LG Chem's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LG Chem over time as well as its relative position and ranking within its peers.
051915 |
LG Chem Beta vs. Shares Outstanding Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining LG Chem's current stock value. Our valuation model uses many indicators to compare LG Chem value to that of its competitors to determine the firm's financial worth. LG Chem is number one stock in shares outstanding category among its peers. It also is number one stock in beta category among its peers . The ratio of Shares Outstanding to Beta for LG Chem is about 6,087,765 . Comparative valuation analysis is a catch-all model that can be used if you cannot value LG Chem by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for LG Chem's Stock. 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.051915 Beta vs. Shares Outstanding
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.
LG Chem |
| = | 7.68 M |
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
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.
LG Chem |
| = | 1.26 |
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.
051915 Beta Comparison
LG Chem is currently under evaluation in beta category among its peers.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, LG Chem will likely underperform.
051915 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on LG Chem. 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 LG Chem 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 LG Chem's important profitability drivers and their relationship over time.
Use LG Chem 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 LG Chem 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 LG Chem will appreciate offsetting losses from the drop in the long position's value.LG Chem Pair Trading
LG Chem Pair Trading Analysis
The ability to find closely correlated positions to LG Chem could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LG Chem 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 LG Chem - 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 LG Chem to buy it.
The correlation of LG Chem 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 LG Chem moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LG Chem 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 LG Chem 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 LG Chem position
In addition to having LG Chem 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 Trading Thematic Idea Now
Trading
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Trading theme has 61 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 Trading Theme or any other thematic opportunities.
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Other Information on Investing in 051915 Stock
To fully project LG Chem's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LG Chem 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 LG Chem's income statement, its balance sheet, and the statement of cash flows.