Sentences with phrase «relative valuation between»

As a result, it's the relative valuation between the two choices that matter because it's the relative risk - premium spread that drives much of investors decision making (whether they're conscious of it or not).

Ex-Fed Chairman Greenspan's favorite way of measuring relative valuation between Stocks and Bond is the Earnings - Yield to Bond - Yield ratio.

The relative valuation between value and growth indices remains pretty extreme — within the widest quintile versus history, see chart below.

Interestingly, when the relative valuations between the U.S. and Canada fall to these levels (using data since 1987), we find that Canadian stocks have tended to hold up pretty well relative to U.S. stocks over the following year (see the chart below).

Interestingly, when the relative valuations between the U.S. and Canada fall to these levels (using data since 1987), we find that Canadian stocks have tended to hold up pretty well relative to U.S. stocks over the following year (see the chart below).

Down markets have a way of changing relative valuations between stocks, industries and geographies.

Not exact matches

Sack and Elsasser attribute the low relative valuation of TIIS over this period to several factors: investor difficulty adjusting to a new asset class, divergent supply trends between TIIS and nominal Treasuries, and the lower liquidity of indexed debt.

The HFRI Relative Value (Total) Index is managed by maintaining positions in which the investment thesis is predicated on realization of a valuation discrepancy in the relationship between multiple securities.

Accordingly, the main strategic difference between «post-war» and «credit - strained» criteria is that valuations take a larger role relative to market action in a deleveraging cycle.

In general, they may seek to take advantage of market inefficiencies such as pricing differences and relative discrepancies between securities such as stocks and bonds, technical market movements, deep fundamental valuation analysis, and other quantifiable trends and / or inconsistencies.

HFRI Relative Value Index maintains positions in which the investment thesis is predicated on realization of a valuation discrepancy in the relationship between multiple securities.

A valuation metric for determining the relative trade - off between the price of a stock, earnings generated per share (EPS), dividend yield and the company's expected growth.

It is this divergence - between the relative valuation of large and small companies - that looks unusually wide.

Valuation differences between large and small - cap stocks lead relative returns William Hester, CFA July 2006 All rights reserved and actively enforced.

We call this the «wedge,» the manifest spreading of the difference between the blue relative - performance line and the green relative - valuation line.

Yet even for momentum we observe correlations between current valuation and future one - year relative returns at a highly significant 1 % level for aggregate valuations and at a 5 % level using P / B valuation.

Almost all of the factors and smart beta strategies exhibit a negative relationship between starting valuation and subsequent performance whether we use the aggregate measure or P / B to define relative valuation.9 Out of 192 tests shown here, not a single test has the «wrong» sign: in every case, the cheaper the factor or strategy gets, relative to its historical average, the more likely it is to deliver positive performance.10 For most factors and strategies (two - thirds of the 192 tests) the relationship holds with statistical significance for horizons ranging from one month to five years and using both valuation measures (44 % of these results are significant at the 1 % level).

It might seem that a 3 - to - 1 ratio between the valuation of growth relative to value is a big spread, but it's not; the spread averages closer to 5 to 1.

In this article, we present evidence that the relationship between current relative valuation and subsequent performance for both factors and smart beta strategies is robust over horizons shorter than five years and using valuation measures other than price - to - book (P / B) ratio.

The dashed line shows the regression fit between the two; a lower starting valuation for value relative to growth strongly correlates with higher subsequent five - year performance.

The performance of an exchange - traded fund may vary from the market index it attempts to replicate due to market volatility, transaction costs, valuation differences, differences between the assets held in the exchange - traded fund's portfolio relative to the market index, and other factors.

While return dispersion is low, dispersion of valuations remains relatively wide by historical standards... Furthermore, there has been a strong relationship between valuation spreads and subsequent outperformance of value stocks (relative to glamour stocks).

The foundation believes borrowers should understand the differences between the valuation products they may receive before closing on a home loan and the relative reliability and applicability of each product.