By analyzing existing basic indicators between Vail Resorts and Ameristar, 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 Ameristar with a short position in Vail Resorts. 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. Vail Resorts has an asset utilization ratio of 76.95 percent. This suggests that the company is making $0.77 for each dollar of assets. An increasing asset utilization means that Vail Resorts 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 Wells or USCF is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
Correlation Between Wells and USCF Gold Strategy
In general, Fund analysis is a method for investors and traders to make individual buying and selling decisions. Mutual Fund 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 Wells Fargo together with similar or unrelated positions with a negative correlation. For example, you can also add USCF Gold to your portfolio. If USCF Gold is not perfectly correlated to Wells Fargo 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 Wells Fargo, 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 Wells Fargo and USCF Gold in your portfolio? Please note if you are using this as a pair-trade strategy between Wells Fargo and USCF Gold, 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 WFDSX and USG for more information.
Sector Allocation
Exchange-Traded Funds use many different techniques to achieve diversification. One of the ways Wells Fargo ETF is managing risk is by picking assets from different sectors and across various asset classes. It helps to ensure that returns are uncorrelated, and risk is spread across the underlying asset classes and industries. Within the same asset class, diversification can be achieved by investing in various investment styles through cross-sector allocation. Below map breaks down Wells Fargo sector allocation.
VolatilityInstrument Allocation
The asset allocation of funds such as Wells Fargo usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Wells Fargo Discovery
DetailsMomentum Analysis of Vail Resorts suggests possible reversal in January
Latest total risk alpha is at 0.18.
As of the 9th of December, Vail Resorts has the Semi Deviation of 1.0,
coefficient of variation of 782.3, and Risk Adjusted Performance of 0.1163. In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Vail Resorts, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen
technical drivers for Vail Resorts, which can be compared to its competition. Please validate
Vail Resorts downside deviation,
jensen alpha, as well as the
relationship between the Jensen Alpha and
downside variance to decide if Vail Resorts is priced more or less accurately, providing market reflects its prevalent price of 344.87 per share. Given that Vail Resorts has
jensen alpha of 0.2103, we advise you to double-check Vail Resorts's current market performance to make sure the company can sustain itself at a future point.
Our Final Take On Vail Resorts
Whereas other companies within the resorts & casinos industry are still a little expensive, even after the recent corrections, Vail Resorts may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view, we believe it may be a good time to increase your existing holdings in Vail Resorts. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Vail Resorts.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of Wells Fargo Discovery. Please refer to our
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