BMO Discount Beta vs. One Year Return

ZDB Etf  CAD 15.24  0.04  0.26%   
Based on BMO Discount's profitability indicators, BMO Discount Bond may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess BMO Discount's ability to earn profits and add value for shareholders.
For BMO Discount profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BMO Discount to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BMO Discount Bond utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BMO Discount's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BMO Discount Bond over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between BMO Discount's value and its price as these two are different measures arrived at by different means. Investors typically determine if BMO Discount is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BMO Discount'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.

BMO Discount Bond One Year Return vs. Beta Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining BMO Discount's current stock value. Our valuation model uses many indicators to compare BMO Discount value to that of its competitors to determine the firm's financial worth.
BMO Discount Bond is rated first in beta as compared to similar ETFs. It is rated first in one year return as compared to similar ETFs reporting about  6.92  of One Year Return per Beta. Comparative valuation analysis is a catch-all model that can be used if you cannot value BMO Discount by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for BMO Discount's Etf. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

BMO One 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.

BMO Discount

Beta

 = 

Covariance

Variance

 = 
1.07
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.
One Year Return is the annualized return generated from holding a security for exactly 12 months. The measure is considered to be good short-term measures of fund performance. In other words, it represents the capital appreciation of fund investments over the last year. However when the market is volatile such as in recent years, One Year Return measure can be misleading.

BMO Discount

One Year Return

 = 

(Mean of Monthly Returns - 1)

X

100%

 = 
7.40 %
Although One Year Fund Return indicator can give a sense of overall fund short-term potential, it is recommended to look at mid and long term return measure before selecting a particular fund or ETF. The great way to validate fund short-term performance is to compare it with other similar funds or ETFs for the same 12 months interval.

BMO One Year Return Comparison

BMO Discount is currently under evaluation in one year return as compared to similar ETFs.

Beta Analysis

BMO Discount returns are very sensitive to returns on the market. As the market goes up or down, BMO Discount is expected to follow.

BMO Discount Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in BMO Discount, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BMO Discount will eventually generate negative long term returns. The profitability progress is the general direction of BMO Discount's change in net profit over the period of time. It can combine multiple indicators of BMO Discount, 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.
BMO Discount Bond Index ETF seeks to replicate, to the extent possible, the performance of a discount bond index representing investment grade domestic bond issues denominated in Canadian dollars, net of expenses. BMO DISCOUNT is traded on Toronto Stock Exchange in Canada.

BMO Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on BMO Discount. 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 BMO Discount 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 BMO Discount's important profitability drivers and their relationship over time.

Use BMO Discount 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 BMO Discount 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 BMO Discount will appreciate offsetting losses from the drop in the long position's value.

BMO Discount Pair Trading

BMO Discount Bond Pair Trading Analysis

The ability to find closely correlated positions to BMO Discount could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BMO Discount 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 BMO Discount - 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 BMO Discount Bond to buy it.
The correlation of BMO Discount 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 BMO Discount moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BMO Discount Bond 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 BMO Discount 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your BMO Discount position

In addition to having BMO Discount 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.

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Investment Grade ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Investment Grade ETFs theme has 260 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 Investment Grade ETFs Theme or any other thematic opportunities.
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Other Information on Investing in BMO Etf

To fully project BMO Discount's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BMO Discount Bond 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 BMO Discount's income statement, its balance sheet, and the statement of cash flows.
Potential BMO Discount investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although BMO Discount investors may work on each financial statement separately, they are all related. The changes in BMO Discount's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on BMO Discount's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.