Capital Income Three Year Return vs. Cash Position Weight
| RIREX Fund | USD 72.91 0.57 0.79% |
For Capital Income profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Capital Income to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Capital Income Builder utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Capital Income's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Capital Income Builder over time as well as its relative position and ranking within its peers.
Capital |
Capital Income Builder Cash Position Weight vs. Three Year Return Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Capital Income's current stock value. Our valuation model uses many indicators to compare Capital Income value to that of its competitors to determine the firm's financial worth. Capital Income Builder is rated top fund in three year return among similar funds. It also is rated top fund in cash position weight among similar funds creating about 0.90 of Cash Position Weight per Three Year Return. The ratio of Three Year Return to Cash Position Weight for Capital Income Builder is roughly 1.11 . 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 Capital Income's earnings, one of the primary drivers of an investment's value.Capital Cash Position Weight vs. Three Year Return
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.
Capital Income |
| = | 5.40 % |
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.
Percentage of fund asset invested in cash equivalents or risk-free instruments. About 40% of all global funds carry cash on their balance sheet.
Capital Income |
| = | 4.87 % |
Funds or ETFs that have over 40% of their value invested in low-risk instruments or cash equivalents typically attract conservative investors.
Capital Cash Position Weight Comparison
Capital Income is currently under evaluation in cash position weight among similar funds.
Capital Income Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Capital Income, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Capital Income will eventually generate negative long term returns. The profitability progress is the general direction of Capital Income's change in net profit over the period of time. It can combine multiple indicators of Capital 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 fund normally will invest at least 90 percent of its assets in income-producing securities . It invests primarily in a broad range of income-producing securities, including common stocks and bonds. In seeking to provide the investors with a level of current income that exceeds the average yield on U.S. stocks, the fund generally looks to the average yield on stocks of companies listed on the SP 500 Index.
Capital Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Capital 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 Capital 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 Capital Income's important profitability drivers and their relationship over time.
Use Capital 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 Capital 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 Capital Income will appreciate offsetting losses from the drop in the long position's value.Capital Income Pair Trading
Capital Income Builder Pair Trading Analysis
The ability to find closely correlated positions to Capital 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 Capital 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 Capital 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 Capital Income Builder to buy it.
The correlation of Capital 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 Capital Income moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capital Income Builder 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 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 Capital Income position
In addition to having Capital 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 Trading Thematic Idea Now
Trading
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Trading theme has 61 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 Trading Theme or any other thematic opportunities.
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Other Information on Investing in Capital Mutual Fund
To fully project Capital Income's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Capital Income Builder 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 Capital Income's income statement, its balance sheet, and the statement of cash flows.
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