Invesco DB Ten Year Return vs. Beta
| DBC Etf | USD 22.24 0.32 1.42% |
For Invesco DB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Invesco DB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Invesco DB Commodity utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Invesco DB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Invesco DB Commodity over time as well as its relative position and ranking within its peers.
Invesco |
The market value of Invesco DB Commodity is measured differently than its book value, which is the value of Invesco that is recorded on the company's balance sheet. Investors also form their own opinion of Invesco DB's value that differs from its market value or its book value, called intrinsic value, which is Invesco DB'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 Invesco DB's market value can be influenced by many factors that don't directly affect Invesco DB'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 Invesco DB's value and its price as these two are different measures arrived at by different means. Investors typically determine if Invesco DB is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Invesco DB'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.
Invesco DB Commodity Beta vs. Ten Year Return Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Invesco DB's current stock value. Our valuation model uses many indicators to compare Invesco DB value to that of its competitors to determine the firm's financial worth. Invesco DB Commodity is one of the top ETFs in ten year return as compared to similar ETFs. It also is one of the top ETFs in beta as compared to similar ETFs totaling about 0.77 of Beta per Ten Year Return. The ratio of Ten Year Return to Beta for Invesco DB Commodity is roughly 1.30 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Invesco DB's earnings, one of the primary drivers of an investment's value.Invesco Beta vs. Ten Year Return
Ten Year Return shows the total annualized return generated from holding a fund for the last 10 years and represents fund's capital appreciation, including dividends losses and capital gains distributions. This return indicator is considered by many investors to be the ultimate measures of fund performance and can reflect the overall performance of the market or market segment it invests in.
Invesco DB |
| = | 1.20 % |
Although Ten Year Fund Return indicator can give a sense of overall fund long-term potential, it is recommended to compare funds performances against other similar funds or market benchmarks for the same 10-year interval.
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.
Invesco DB |
| = | 0.92 |
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.
Invesco Beta Comparison
Invesco DB is currently under evaluation in beta as compared to similar ETFs.
Beta Analysis
Invesco DB returns are very sensitive to returns on the market. As the market goes up or down, Invesco DB is expected to follow.
Invesco DB Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Invesco DB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Invesco DB will eventually generate negative long term returns. The profitability progress is the general direction of Invesco DB's change in net profit over the period of time. It can combine multiple indicators of Invesco DB, 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 pursues its investment objective by investing in a portfolio of exchange-traded futures on Light Sweet Crude Oil , Heating Oil, RBOB Gasoline, Natural Gas, Brent Crude, Gold, Silver, Aluminum, Zinc, Copper Grade A, Corn, Wheat, Soybeans, and Sugar. DB Commodity is traded on NYSEARCA Exchange in the United States.
Invesco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Invesco DB. 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 Invesco DB 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 Invesco DB's important profitability drivers and their relationship over time.
Use Invesco DB 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 Invesco DB 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 Invesco DB will appreciate offsetting losses from the drop in the long position's value.Invesco DB Pair Trading
Invesco DB Commodity Pair Trading Analysis
The ability to find closely correlated positions to Invesco DB could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Invesco DB 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 Invesco DB - 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 Invesco DB Commodity to buy it.
The correlation of Invesco DB 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 Invesco DB moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Invesco DB Commodity 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 Invesco DB 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 Invesco DB position
In addition to having Invesco DB 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?
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To fully project Invesco DB's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Invesco DB Commodity 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 Invesco DB's income statement, its balance sheet, and the statement of cash flows.