By analyzing existing technical indicators between Hoegh LNG and Dynagas, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Dynagas with a short position in Hoegh LNG. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hoegh LNG has an asset utilization ratio of 19.12 percent. This suggests that the company is making $0.19 for each dollar of assets. An increasing asset utilization means that Hoegh LNG Partners is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Hoegh or Fidus is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Hoegh LNG's Liquidity
Hoegh LNG
financial leverage refers to using borrowed capital as a funding source to finance Hoegh LNG Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hoegh LNG financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Hoegh LNG's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Hoegh LNG's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Hoegh LNG's total debt and its cash.
Correlation Between Hoegh and Fidus Investment Corp
In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Hoegh LNG together with similar or unrelated positions with a negative correlation. For example, you can also add Fidus Investment to your portfolio. If Fidus Investment is not perfectly correlated to Hoegh LNG it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Hoegh LNG, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Hoegh LNG and Fidus Investment in your portfolio? Please note if you are using this as a pair-trade strategy between Hoegh LNG and Fidus Investment, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between HMLP and FDUS for more information.
An Additional Perspective On Hoegh LNG Partners
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Hoegh LNG revenue. Based on the latest financial disclosure, Hoegh LNG Partners reported 146.05
M of revenue. This is 99.7% lower than that of the Energy sector and 98.76% lower than that of the
Oil & Gas Midstream industry. The revenue for all United States stocks is 98.45% higher than that of Hoegh LNG. As for Dynagas LNG we see revenue of 133.97
M, which is 98.86% lower than that of the Oil & Gas Midstream
| HMLP | 146.05 Million | 1.5 |
| Sector | 9.43 Billion | 97.12 |
| DLNG | 133.97 Million | 1.38 |
Our Hoegh analysis suggests possible reversion in September
Recent kurtosis is at 1.07. Hoegh LNG Partners shows above-average downside volatility for the selected time horizon. We advise investors to inspect Hoegh LNG Partners further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Hoegh LNG future alpha.
When is the right time to buy or sell Hoegh LNG Partners? Buying stocks such as Hoegh LNG isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. To sum up, as of the 19th of August 2020, we see that Hoegh LNG moves indifferently to market moves. The firm is
undervalued with
below average odds of financial distress within the next 24 months. However, our present 30 days Buy-Hold-Sell recommendation on the firm is
Strong Sell.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Hoegh LNG Partners. Please refer to our
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