Equity Income Price To Book vs. Five Year Return
| TWEAX Fund | USD 9.59 0.06 0.63% |
For Equity Income profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Equity Income to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Equity Income Fund utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Equity Income's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Equity Income Fund over time as well as its relative position and ranking within its peers.
Equity |
Equity Income Five Year Return vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Equity Income's current stock value. Our valuation model uses many indicators to compare Equity Income value to that of its competitors to determine the firm's financial worth. Equity Income Fund is rated top fund in price to book among similar funds. It also is rated top fund in five year return among similar funds reporting about 2.93 of Five Year Return per Price To Book. 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 Equity Income's earnings, one of the primary drivers of an investment's value.Equity Five Year Return vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Equity Income |
| = | 2.28 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Five Year Return is considered one of the best measures to evaluate fund performance, especially from the mid and long term perspective. It shows the total annualized return generated from holding equity for the last five years and represents capital appreciation of the investment, including all dividends, losses, and capital gains distributions.
Equity Income |
| = | 6.67 % |
Although Five Year Returns can give a sense of overall investment potential, it is recommended to compare equity performance with similar assets for the same five year time interval. Similarly, comparing overall investment performance over the last five years with the appropriate market index is a great way to determine how this equity instrument will perform during unforeseen market fluctuations.
Equity Five Year Return Comparison
Equity Income is currently under evaluation in five year return among similar funds.
Equity Income Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Equity Income, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Equity Income will eventually generate negative long term returns. The profitability progress is the general direction of Equity Income's change in net profit over the period of time. It can combine multiple indicators of Equity Income, 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 portfolio managers look for equity securities of companies with a favorable income-paying history that have prospects for income payments to continue or increase. The portfolio managers also look for equity securities of companies that they believe are undervalued and have the potential for an increase in price. The fund may invest a portion of its assets in foreign securities when these securities meet the portfolio managers standards of selection.
Equity Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Equity Income. 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 Equity Income 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 Equity Income's important profitability drivers and their relationship over time.
Use Equity Income 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 Equity Income 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 Equity Income will appreciate offsetting losses from the drop in the long position's value.Equity Income Pair Trading
Equity Income Fund Pair Trading Analysis
The ability to find closely correlated positions to Equity Income could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Equity Income 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 Equity Income - 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 Equity Income Fund to buy it.
The correlation of Equity Income 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 Equity Income moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Equity Income 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 Equity Income 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 Equity Income position
In addition to having Equity Income 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 Marketing Thematic Idea Now
Marketing
Companies providing marketing and public relation (PR) services as well as news and media distribution. The Marketing theme has 43 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 Marketing Theme or any other thematic opportunities.
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Other Information on Investing in Equity Mutual Fund
To fully project Equity Income's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Equity Income 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 Equity Income's income statement, its balance sheet, and the statement of cash flows.
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