| ARDC Fund | | | USD 13.87 0.08 0.57% |
Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Ares Dynamic Credit. Also, note that the market value of any fund could be tightly coupled with the direction of predictive economic indicators such as
signals in unemployment.
Ares Dynamic Credit Fund Z Score Analysis
Ares Dynamic's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
| First Factor | = | 1.2 * ( | Working Capital | / | Total Assets ) |
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| Second Factor | = | 1.4 * ( | Retained Earnings | / | Total Assets ) |
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| Thrid Factor | = | 3.3 * ( | EBITAD | / | Total Assets ) |
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| Fouth Factor | = | 0.6 * ( | Market Value of Equity | / | Total Liabilities ) |
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| Fifth Factor | = | 0.99 * ( | Revenue | / | Total Assets ) |
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To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
In accordance with the company's disclosures, Ares Dynamic Credit has a Z Score of 0.0. This indicator is about the same for the Financial Services average (which is currently at 0.0) family and about the same as
Asset Management (which currently averages 0.0) category. This indicator is about the same for all United States funds average (which is currently at 0.0).
| | Aroon OscillatorAnalyze current equity momentum using Aroon Oscillator and other momentum ratios |
Ares Fundamentals
About Ares Dynamic Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Ares Dynamic Credit's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ares Dynamic using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Ares Dynamic Credit based on its fundamental data. In general, a quantitative approach, as applied to this fund, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as
technical analysis,
investor sentiment usually refers to the aggregate attitude towards Ares Dynamic in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge
market sentiment could be utilized using contrarian indexes, Ares Dynamic's short interest history, or implied volatility extrapolated from Ares Dynamic options trading.
Pair Trading with Ares Dynamic
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 Ares Dynamic 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 Ares Dynamic will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Ares Dynamic could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ares Dynamic 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 Ares Dynamic - 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 Ares Dynamic Credit to buy it.
The correlation of Ares Dynamic 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 Ares Dynamic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ares Dynamic Credit 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 Ares Dynamic 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.
Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Ares Dynamic Credit. Also, note that the market value of any fund could be tightly coupled with the direction of predictive economic indicators such as
signals in unemployment.
Note that the Ares Dynamic Credit information on this page should be used as a complementary analysis to other Ares Dynamic's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the
Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..