Lument Finance Return On Asset vs. Beta
| LFT-PA Preferred Stock | USD 22.45 0.07 0.31% |
For Lument Finance profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lument Finance to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lument Finance Trust utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lument Finance's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lument Finance Trust over time as well as its relative position and ranking within its peers.
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Lument Finance Trust Beta vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lument Finance's current stock value. Our valuation model uses many indicators to compare Lument Finance value to that of its competitors to determine the firm's financial worth. Lument Finance Trust is currently regarded as number one stock in return on asset category among its peers. It also is currently regarded as number one stock in beta category among its peers totaling about 112.38 of Beta per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lument Finance by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lument Finance's Preferred 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.Lument Beta vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Lument Finance |
| = | 0.0106 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.
Lument Finance |
| = | 1.19 |
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.
Lument Beta Comparison
Lument Finance 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, Lument Finance will likely underperform.
Lument Finance Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lument Finance, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lument Finance will eventually generate negative long term returns. The profitability progress is the general direction of Lument Finance's change in net profit over the period of time. It can combine multiple indicators of Lument Finance, 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.
Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate debt investments in the United States. Lument Finance Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York. Lument Finance operates under REITMortgage classification in the United States and is traded on NYQ Exchange.
Lument Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lument Finance. 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 Lument Finance 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 Lument Finance's important profitability drivers and their relationship over time.
Use Lument Finance 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 Lument Finance 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 Lument Finance will appreciate offsetting losses from the drop in the long position's value.Lument Finance Pair Trading
Lument Finance Trust Pair Trading Analysis
The ability to find closely correlated positions to Lument Finance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lument Finance 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 Lument Finance - 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 Lument Finance Trust to buy it.
The correlation of Lument Finance 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 Lument Finance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lument Finance Trust 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 Lument Finance 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 Lument Finance position
In addition to having Lument Finance 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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Most Shorted Equities
Dynamically calculated list of top equities currently trending upward via a buy-out by investors. The Most Shorted Equities theme has 223 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 Most Shorted Equities Theme or any other thematic opportunities.
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Other Information on Investing in Lument Preferred Stock
To fully project Lument Finance's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lument Finance Trust 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 Lument Finance's income statement, its balance sheet, and the statement of cash flows.