Capital Product Return On Asset vs. Return On Equity
Based on Capital Product's profitability indicators, Capital Product Partners may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Capital Product's ability to earn profits and add value for shareholders.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
For Capital Product profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Capital Product to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Capital Product Partners utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Capital Product's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Capital Product Partners over time as well as its relative position and ranking within its peers.
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Capital Product Partners Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Capital Product's current stock value. Our valuation model uses many indicators to compare Capital Product value to that of its competitors to determine the firm's financial worth. Capital Product Partners is rated second in return on asset category among its peers. It also is rated second in return on equity category among its peers reporting about 2.86 of Return On Equity per Return On Asset. Comparative valuation analysis is a catch-all technique that is used if you cannot value Capital Product 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.Capital Return On Equity 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.
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| = | 0.0364 |
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.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Capital Product |
| = | 0.1 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Capital Return On Equity Comparison
Capital Product is currently under evaluation in return on equity category among its peers.
Capital Product Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Capital Product, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Capital Product will eventually generate negative long term returns. The profitability progress is the general direction of Capital Product's change in net profit over the period of time. It can combine multiple indicators of Capital Product, 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.
Capital Product Partners L.P., a shipping company, provides marine transportation services in Greece. The company was incorporated in 2007 and is headquartered in Piraeus, Greece. Capital Product operates under Marine Shipping classification in the United States and is traded on NASDAQ Exchange.
Capital Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Capital Product. 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 Capital Product 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 Capital Product's important profitability drivers and their relationship over time.
Use Capital Product 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 Capital Product 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 Capital Product will appreciate offsetting losses from the drop in the long position's value.Capital Product Pair Trading
Capital Product Partners Pair Trading Analysis
The ability to find closely correlated positions to Capital Product could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Capital Product 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 Capital Product - 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 Capital Product Partners to buy it.
The correlation of Capital Product 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 Capital Product moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capital Product Partners 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 Capital Product 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 Capital Product position
In addition to having Capital Product 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 Latest Gainers Thematic Idea Now
Latest Gainers
Dynamically computed list of top equities currently sorted across major exchanges. The Latest Gainers theme has 208 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 Latest Gainers Theme or any other thematic opportunities.
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Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Consideration for investing in Capital Stock
If you are still planning to invest in Capital Product Partners check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Capital Product's history and understand the potential risks before investing.
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