Futu Holdings Short Ratio vs. Current Valuation
Based on Futu Holdings' profitability indicators, Futu Holdings Limited may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Futu Holdings' ability to earn profits and add value for shareholders.
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate.
Please note, there is a significant difference between Futu Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Futu Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Futu Holdings' 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.
For Futu Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Futu Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Futu Holdings Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Futu Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Futu Holdings Limited over time as well as its relative position and ranking within its peers.
Futu |
Futu Holdings Limited Current Valuation vs. Short Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Futu Holdings's current stock value. Our valuation model uses many indicators to compare Futu Holdings value to that of its competitors to determine the firm's financial worth. Futu Holdings Limited is one of the top stocks in short ratio category among its peers. It also is rated as one of the top companies in current valuation category among its peers reporting about 208,620,690 of Current Valuation per Short Ratio. Comparative valuation analysis is a catch-all technique that is used if you cannot value Futu Holdings 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.Futu Current Valuation vs. Short Ratio
Short Ratio is typically used by traders and speculators to identify trends in current market sentiment for a particular equity instrument. In its simple terms this ratio shows how many days it will take all current short sellers to cover their positions if the price of a stock begins to rise.
Futu Holdings |
| = | 5.80 X |
The higher the Short Ratio, the longer it would take to buy back the borrowed shares. In theory, the more short positions are currently outstanding, the faster it will be to cover shorted positions.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Futu Holdings |
| = | 1.21 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Futu Current Valuation vs Competition
Futu Holdings Limited is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Capital Markets industry is currently estimated at about 42.94 Billion. Futu Holdings holds roughly 1.21 Billion in current valuation claiming about 2.82% of stocks in Capital Markets industry.
Futu Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Futu Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Futu Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Futu Holdings' change in net profit over the period of time. It can combine multiple indicators of Futu Holdings, 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.
Futu Holdings Limited operates digitized brokerage platform in Hong Kong, China, Japan, the United States, and internationally. The company was founded in 2011 and is headquartered in Admiralty, Hong Kong. Futu Holdings is traded on BATS Exchange in USA.
Futu Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Futu Holdings. 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 Futu Holdings 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 Futu Holdings' important profitability drivers and their relationship over time.
Use Futu Holdings 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 Futu Holdings 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 Futu Holdings will appreciate offsetting losses from the drop in the long position's value.Futu Holdings Pair Trading
Futu Holdings Limited Pair Trading Analysis
The ability to find closely correlated positions to Nextera Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nextera Energy 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 Nextera Energy - 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 Nextera Energy to buy it.
The correlation of Nextera Energy 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 Nextera Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nextera Energy 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 Nextera Energy 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 Futu Holdings position
In addition to having Futu Holdings 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 Compulsion Thematic Idea Now
Compulsion
Companies involved in research, development, and manufacturing of products with compulsion characteristics such as cigarettes, addictive drugs and alcohol. The Compulsion theme has 40 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 Compulsion Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Consideration for investing in Futu Stock
If you are still planning to invest in Futu Holdings Limited check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Futu Holdings' history and understand the potential risks before investing.
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