NVIDIA Shares Owned By Institutions vs. Beta
| NVD Stock | 136.62 1.86 1.34% |
For NVIDIA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NVIDIA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NVIDIA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NVIDIA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NVIDIA over time as well as its relative position and ranking within its peers.
NVIDIA |
NVIDIA Beta vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NVIDIA's current stock value. Our valuation model uses many indicators to compare NVIDIA value to that of its competitors to determine the firm's financial worth. NVIDIA is considered to be number one stock in shares owned by institutions category among its peers. It also is considered to be number one stock in beta category among its peers totaling about 0.03 of Beta per Shares Owned By Institutions. The ratio of Shares Owned By Institutions to Beta for NVIDIA is roughly 38.02 . 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 NVIDIA's earnings, one of the primary drivers of an investment's value.NVIDIA Beta vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
NVIDIA |
| = | 68.07 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
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.
NVIDIA |
| = | 1.79 |
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.
NVIDIA Beta Comparison
NVIDIA 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, NVIDIA will likely underperform.
NVIDIA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NVIDIA. 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 NVIDIA 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 NVIDIA's important profitability drivers and their relationship over time.
Use NVIDIA 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 NVIDIA 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 NVIDIA will appreciate offsetting losses from the drop in the long position's value.NVIDIA Pair Trading
NVIDIA Pair Trading Analysis
The ability to find closely correlated positions to NVIDIA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NVIDIA 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 NVIDIA - 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 NVIDIA to buy it.
The correlation of NVIDIA 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 NVIDIA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NVIDIA 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 NVIDIA 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 NVIDIA position
In addition to having NVIDIA 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 Shipping Containers Thematic Idea Now
Shipping Containers
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipping Containers theme has 16 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 Shipping Containers Theme or any other thematic opportunities.
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Additional Tools for NVIDIA Stock Analysis
When running NVIDIA's price analysis, check to measure NVIDIA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NVIDIA is operating at the current time. Most of NVIDIA's value examination focuses on studying past and present price action to predict the probability of NVIDIA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NVIDIA's price. Additionally, you may evaluate how the addition of NVIDIA to your portfolios can decrease your overall portfolio volatility.