Herzfeld Caribbean Beta vs. Price To Earning
| CUBA Fund | USD 2.48 0.01 0.40% |
For Herzfeld Caribbean profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Herzfeld Caribbean to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Herzfeld Caribbean Basin utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Herzfeld Caribbean's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Herzfeld Caribbean Basin over time as well as its relative position and ranking within its peers.
Herzfeld |
Herzfeld Caribbean Basin Price To Earning vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Herzfeld Caribbean's current stock value. Our valuation model uses many indicators to compare Herzfeld Caribbean value to that of its competitors to determine the firm's financial worth. Herzfeld Caribbean Basin is the top fund in beta among similar funds. It is fifth largest fund in price to earning among similar funds reporting about 2.48 of Price To Earning per Beta. 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 Herzfeld Caribbean's earnings, one of the primary drivers of an investment's value.Herzfeld Price To Earning 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.
Herzfeld Caribbean |
| = | 1.35 |
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Herzfeld Caribbean |
| = | 3.35 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Herzfeld Price To Earning Comparison
Herzfeld Caribbean is currently under evaluation in price to earning among similar funds.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Herzfeld Caribbean will likely underperform.
Herzfeld Caribbean Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Herzfeld Caribbean, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Herzfeld Caribbean will eventually generate negative long term returns. The profitability progress is the general direction of Herzfeld Caribbean's change in net profit over the period of time. It can combine multiple indicators of Herzfeld Caribbean, 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 Herzfeld Caribbean Basin Fund Inc. is a closed-ended equity mutual fund launched by Thomas J. Herzfeld Advisors, Inc. The fund is managed by HerzfeldCuba. It invests in the public equity markets of the United States. The fund employing fundamental analysis investing in stocks of companies that are likely to benefit from economic, political, structural and technological developments in the countries in the Caribbean Basin, which consist of Cuba, Jamaica, Trinidad and Tobago, the Bahamas, the Dominican Republic, Barbados, Aruba, Haiti, the Netherlands Antilles, the Commonwealth of Puerto Rico, Mexico, Honduras, Guatemala, Belize, Costa Rica, Panama, Colombia and Venezuela. It invests in stocks of companies operating across diversified sectors. The Herzfeld Caribbean Basin Fund Inc. was formed on March 10, 1992 and is domiciled in the United States.
Herzfeld Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Herzfeld Caribbean. 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 Herzfeld Caribbean 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 Herzfeld Caribbean's important profitability drivers and their relationship over time.
Use Herzfeld Caribbean 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 Herzfeld Caribbean 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 Herzfeld Caribbean will appreciate offsetting losses from the drop in the long position's value.Herzfeld Caribbean Pair Trading
Herzfeld Caribbean Basin Pair Trading Analysis
The ability to find closely correlated positions to Herzfeld Caribbean could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Herzfeld Caribbean 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 Herzfeld Caribbean - 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 Herzfeld Caribbean Basin to buy it.
The correlation of Herzfeld Caribbean 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 Herzfeld Caribbean moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Herzfeld Caribbean Basin 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 Herzfeld Caribbean 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 Herzfeld Caribbean position
In addition to having Herzfeld Caribbean 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 Rubber and Plastic Products Thematic Idea Now
Rubber and Plastic Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Rubber and Plastic Products theme has 27 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 Rubber and Plastic Products Theme or any other thematic opportunities.
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Other Information on Investing in Herzfeld Fund
To fully project Herzfeld Caribbean's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Herzfeld Caribbean Basin 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 Herzfeld Caribbean's income statement, its balance sheet, and the statement of cash flows.
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