Grayscale Horizen Trust vs Lmp Automotive Holdings
 | By Rifka Kats | Macroaxis Story |
As many rational traders are trying to avoid consumer cyclical space, it makes sense to break down Lmp Automotive Holdings a little further and understand how it stands against Grayscale Horizen and other similar entities. We are going to inspect some of the competitive aspects of both Lmp Automotive and Grayscale.
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Reviewed by Vlad Skutelnik
By analyzing existing basic indicators between Lmp Automotive and Grayscale, 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 Grayscale with a short position in Lmp Automotive. Check out our pair correlation module for more information.
Let's begin by analyzing the assets.
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. Lmp Automotive has an asset utilization ratio of 1780.77 percent. This suggests that the company is making $17.81 for each dollar of assets. An increasing asset utilization means that Lmp Automotive Holdings 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 Lmp or CarGurus is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step. 
How important is Lmp Automotive's Liquidity
Lmp Automotive financial leverage refers to using borrowed capital as a funding source to finance Lmp Automotive Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lmp Automotive 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 Lmp Automotive'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 Lmp Automotive'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 Lmp Automotive's total debt and its cash.
Correlation Between Lmp and CarGurus
In general, OTC analysis is a method for investors and traders to make individual buying and selling decisions. OTC 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 Lmp Automotive together with similar or unrelated positions with a negative correlation. For example, you can also add CarGurus to your portfolio. If CarGurus is not perfectly correlated to Lmp Automotive 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 Lmp Automotive, 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 Lmp Automotive and CarGurus in your portfolio? Please note if you are using this as a pair-trade strategy between Lmp Automotive and CarGurus, 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 LMPX and CARG for more information.Building efficient market-beating portfolios requires time, education, and a lot of computing power!
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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 Lmp Automotive Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.