Principal Spectrum Beta vs. Three Year Return
| PREF Etf | USD 18.73 0.01 0.05% |
For Principal Spectrum profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Principal Spectrum to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Principal Spectrum Preferred utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Principal Spectrum's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Principal Spectrum Preferred over time as well as its relative position and ranking within its peers.
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The market value of Principal Spectrum is measured differently than its book value, which is the value of Principal that is recorded on the company's balance sheet. Investors also form their own opinion of Principal Spectrum's value that differs from its market value or its book value, called intrinsic value, which is Principal Spectrum'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 Principal Spectrum's market value can be influenced by many factors that don't directly affect Principal Spectrum'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 Principal Spectrum's value and its price as these two are different measures arrived at by different means. Investors typically determine if Principal Spectrum is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Principal Spectrum'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.
Principal Spectrum Three Year Return vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Principal Spectrum's current stock value. Our valuation model uses many indicators to compare Principal Spectrum value to that of its competitors to determine the firm's financial worth. Principal Spectrum Preferred is regarded second largest ETF in beta as compared to similar ETFs. It is rated number one ETF in three year return as compared to similar ETFs reporting about 2.33 of Three Year Return per Beta. Comparative valuation analysis is a catch-all technique that is used if you cannot value Principal Spectrum 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.Principal Three 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.
Principal Spectrum |
| = | 0.73 |
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.
Tree Year Return shows the total annualized return generated from holding a fund or ETFs for the last three years. The return measure includes capital appreciation, losses, dividends paid, and all capital gains distributions. This return indicator is considered by many investors to be solid measures of fund mid-term performance.
Principal Spectrum |
| = | 1.70 % |
Although Three Year Fund Return indicator can give a sense of overall fund mid-term potential, it is recommended to compare fund performances against other similar funds, ETFs, or market benchmarks for the same 3 year interval.
Principal Three Year Return Comparison
Principal Spectrum is currently under evaluation in three year return as compared to similar ETFs.
Beta Analysis
As returns on the market increase, Principal Spectrum's returns are expected to increase less than the market. However, during the bear market, the loss of holding Principal Spectrum is expected to be smaller as well.
Principal Spectrum Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Principal Spectrum, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Principal Spectrum will eventually generate negative long term returns. The profitability progress is the general direction of Principal Spectrum's change in net profit over the period of time. It can combine multiple indicators of Principal Spectrum, 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.
Under normal circumstances, the fund invests at least 80 percent of its net assets, plus any borrowings for investment purposes, in preferred securities at the time of purchase. Principal Spectrum is traded on NYSEARCA Exchange in the United States.
Principal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Principal Spectrum. 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 Principal Spectrum 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 Principal Spectrum's important profitability drivers and their relationship over time.
| Beta vs One Year Return | ||
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| Last Dividend Paid vs Three Year Return | ||
| Beta vs Bond Positions Weight |
Use Principal Spectrum 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 Principal Spectrum 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 Principal Spectrum will appreciate offsetting losses from the drop in the long position's value.Principal Spectrum Pair Trading
Principal Spectrum Preferred Pair Trading Analysis
The ability to find closely correlated positions to Principal Spectrum could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Principal Spectrum 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 Principal Spectrum - 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 Principal Spectrum Preferred to buy it.
The correlation of Principal Spectrum 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 Principal Spectrum moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Principal Spectrum 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 Principal Spectrum 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 Principal Spectrum position
In addition to having Principal Spectrum 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 Tips ETFs Thematic Idea Now
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Tips ETFs theme has 41 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 Tips ETFs Theme or any other thematic opportunities.
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Check out Your Equity Center. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Principal Spectrum's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Principal Spectrum 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 Principal Spectrum's income statement, its balance sheet, and the statement of cash flows.