Net Income

The Net Income Fundamental Analysis lookup allows you to check this and other indicators for any equity instrument. You can also select from a set of available indicators by clicking on the link to the right. Please note, this module does not cover all equities due to inconsistencies in global equity categorizations. Please continue to Equity Screeners to view more equity screening tools.
  
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Net Income In A Nutshell

Net income is a number you want to monitor for stability or growth. Depending on the company and what they are doing, that number can drop but it should be for reasons such as acquisitions or new equipment. To calculate net income, you will take the company’s whole revenue number and subtract business expenses and operating costs to get a number pre tax. From there you can take out taxes and arrive at the net income number. Taxes are important to watch as well as you want to see favorable tax numbers over the long haul.

Income for a business is important and net income can help by eliminating taxes and more, giving you a true total of income. For example, if you make $10,000 and tax is 10%, your net income would be $9,000. Net income also goes by other names such as earnings or profit attributable. This number is used in the EPS or earnings per share calculation that allows investors to compare apples to apples.

Closer Look at Net Income

Similar to revenue, this will let you gauge whether or not that company is growing or shrinking and if there is potential into the future to make money. MacroAxis has a plethora of tools and research material to help you take this number to a whole other level. Comparing net income across companies can help you find which ones are growing, but you have to ensure they are in the same space and close to the same size because net income growth for a growing company could be exponential compared to an established one. Fundamental research is crucial to investing and net income is one of the more important numbers.

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Pair Trading with Investor Education

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 Investor Education 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 Investor Education will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Autodesk could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Autodesk 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 Autodesk - 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 Autodesk to buy it.
The correlation of Autodesk 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 Autodesk moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Autodesk 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 Autodesk 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
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any private could be closely tied with the direction of predictive economic indicators such as signals in estimate.
You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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