FlexShares ESG Beta vs. One Year Return
| FEDM Etf | USD 49.33 0.17 0.35% |
For FlexShares ESG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of FlexShares ESG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well FlexShares ESG Climate utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between FlexShares ESG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of FlexShares ESG Climate over time as well as its relative position and ranking within its peers.
FlexShares |
The market value of FlexShares ESG Climate is measured differently than its book value, which is the value of FlexShares that is recorded on the company's balance sheet. Investors also form their own opinion of FlexShares ESG's value that differs from its market value or its book value, called intrinsic value, which is FlexShares ESG'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 FlexShares ESG's market value can be influenced by many factors that don't directly affect FlexShares ESG'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 FlexShares ESG's value and its price as these two are different measures arrived at by different means. Investors typically determine if FlexShares ESG is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FlexShares ESG'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.
FlexShares ESG Climate One Year Return vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining FlexShares ESG's current stock value. Our valuation model uses many indicators to compare FlexShares ESG value to that of its competitors to determine the firm's financial worth. FlexShares ESG Climate is one of the top ETFs in beta as compared to similar ETFs. It also is one of the top ETFs in one year return as compared to similar ETFs reporting about 11.26 of One Year Return per Beta. Comparative valuation analysis is a catch-all technique that is used if you cannot value FlexShares ESG by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.FlexShares One Year Return vs. Beta
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.
FlexShares ESG |
| = | 1.03 |
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.
One Year Return is the annualized return generated from holding a security for exactly 12 months. The measure is considered to be good short-term measures of fund performance. In other words, it represents the capital appreciation of fund investments over the last year. However when the market is volatile such as in recent years, One Year Return measure can be misleading.
FlexShares ESG |
| = | 11.60 % |
Although One Year Fund Return indicator can give a sense of overall fund short-term potential, it is recommended to look at mid and long term return measure before selecting a particular fund or ETF. The great way to validate fund short-term performance is to compare it with other similar funds or ETFs for the same 12 months interval.
FlexShares One Year Return Comparison
FlexShares ESG is currently under evaluation in one year return as compared to similar ETFs.
Beta Analysis
FlexShares ESG returns are very sensitive to returns on the market. As the market goes up or down, FlexShares ESG is expected to follow.
FlexShares ESG Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in FlexShares ESG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, FlexShares ESG will eventually generate negative long term returns. The profitability progress is the general direction of FlexShares ESG's change in net profit over the period of time. It can combine multiple indicators of FlexShares ESG, 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 underlying index is designed to reflect the performance of a selection of companies that exhibit certain ESG characteristics, while also seeking to provide broad-market, core exposure to publicly traded equity securities issued by companies domiciled in developed market countries, excluding the U.S. Flexshares ESG is traded on NYSEARCA Exchange in the United States.
FlexShares Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on FlexShares ESG. 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 FlexShares ESG 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 FlexShares ESG's important profitability drivers and their relationship over time.
Use FlexShares ESG 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 FlexShares ESG 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 FlexShares ESG will appreciate offsetting losses from the drop in the long position's value.FlexShares ESG Pair Trading
FlexShares ESG Climate Pair Trading Analysis
The ability to find closely correlated positions to FlexShares ESG could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace FlexShares ESG 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 FlexShares ESG - 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 FlexShares ESG Climate to buy it.
The correlation of FlexShares ESG 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 FlexShares ESG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if FlexShares ESG Climate 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 FlexShares ESG 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 FlexShares ESG position
In addition to having FlexShares ESG 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 Corona Opportunity Thematic Idea Now
Corona Opportunity
Firms that are involved in some capacity in making products or providing services to the public to buttle the virus directly or indirectly. This also includes some defencive and contrarian stocks and ETFs that are managing to avoid the big market correction coused by coronavirus. The Corona Opportunity theme has 46 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 Corona Opportunity Theme or any other thematic opportunities.
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Check out Investing Opportunities. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
To fully project FlexShares ESG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of FlexShares ESG Climate 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 FlexShares ESG's income statement, its balance sheet, and the statement of cash flows.