AdvisorShares Pure Beta vs. Net Asset
Investors evaluate AdvisorShares Pure using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating AdvisorShares Pure's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Analysts utilize numerous techniques to assess fundamental value, seeking to purchase shares when trading prices fall beneath estimated intrinsic worth. External factors like market trends, sector rotation, and investor psychology can cause AdvisorShares Pure's market price to deviate significantly from intrinsic value.
Understanding that AdvisorShares Pure's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether AdvisorShares Pure represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, AdvisorShares Pure's market price signifies the transaction level at which participants voluntarily complete trades.
AdvisorShares Pure Net Asset vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AdvisorShares Pure's current stock value. Our valuation model uses many indicators to compare AdvisorShares Pure value to that of its competitors to determine the firm's financial worth. AdvisorShares Pure Cannabis is rated number one ETF in beta as compared to similar ETFs. It also is rated number one ETF in net asset as compared to similar ETFs . Comparative valuation analysis is a catch-all technique that is used if you cannot value AdvisorShares Pure 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.AdvisorShares Net Asset 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.
AdvisorShares Pure |
| = | -0.09 |
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.
Net Asset is the current market value of a fund less its liabilities. In a nutshell, if the fund is liquidated or all of the assets is sold out, the net asset will be the amount that the shareholders would demand back from the fund.
AdvisorShares Pure |
| = | 499.95 M |
Net Asset is the value used in calculating NAV of a fund. NAV (or Net Asset Value) is computed once a day based on the formula that uses closing prices of all positions in the fund's portfolio.
AdvisorShares Net Asset Comparison
AdvisorShares Pure is currently under evaluation in net asset as compared to similar ETFs.
Beta Analysis
As returns on the market increase, returns on owning AdvisorShares Pure are expected to decrease at a much lower rate. During the bear market, AdvisorShares Pure is likely to outperform the market.
AdvisorShares Pure Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AdvisorShares Pure, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AdvisorShares Pure will eventually generate negative long term returns. The profitability progress is the general direction of AdvisorShares Pure's change in net profit over the period of time. It can combine multiple indicators of AdvisorShares Pure, 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 is an actively managed ETF that seeks to achieve its investment objective by investing, under normal circumstances, at least 80 percent of its net assets in securities of companies that derive at least 50 percent of their net revenue from the marijuana and hemp business in the United States and in derivatives that have economic characteristics similar to such securities. Advisorshares Pure is traded on NYSEARCA Exchange in the United States.
AdvisorShares Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AdvisorShares Pure. 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 AdvisorShares Pure 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 AdvisorShares Pure's important profitability drivers and their relationship over time.
| Beta vs One Year Return | ||
| Three Year Return vs Net Asset | ||
| Beta vs Five Year Return | ||
| Equity Positions Weight vs Net Asset |
AdvisorShares Pure Earnings per Share Projection vs Actual
Use AdvisorShares Pure 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 AdvisorShares Pure 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 AdvisorShares Pure will appreciate offsetting losses from the drop in the long position's value.AdvisorShares Pure Pair Trading
AdvisorShares Pure Cannabis Pair Trading Analysis
The ability to find closely correlated positions to AdvisorShares Pure could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AdvisorShares Pure 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 AdvisorShares Pure - 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 AdvisorShares Pure Cannabis to buy it.
The correlation of AdvisorShares Pure 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 AdvisorShares Pure moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AdvisorShares Pure 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 AdvisorShares Pure 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 AdvisorShares Pure position
In addition to having AdvisorShares Pure 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 ISP Thematic Idea Now
ISP
Internet Service Providers (ISP) companies and IT providers specializing in internet technologies. The ISP theme has 37 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 ISP Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Correlation Analysis. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project AdvisorShares Pure's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AdvisorShares Pure 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 AdvisorShares Pure's income statement, its balance sheet, and the statement of cash flows.