Fund Asset Allocation for Capitol Series
The fund consists of 70.4% investments in stocks, with the rest of investments allocated between various types of exotic instruments. Asset allocation divides Capitol Series' investment portfolio among different asset categories to balance risk and reward by investing in a diversified mix of instruments that align with the investor's goals, risk tolerance, and time horizon. Mutual funds, which pool money from multiple investors to buy a diversified portfolio of securities, use asset allocation strategies to manage the risk and return of their portfolios.
Mutual funds allocate their assets by investing in a diversified portfolio of securities, such as stocks, bonds, cryptocurrencies and cash. The specific mix of these securities is determined by the fund's investment objective and strategy. For example, a stock mutual fund may invest primarily in equities, while a bond mutual fund may invest mainly in fixed-income securities. The fund's manager, responsible for making investment decisions, will buy and sell securities in the fund's portfolio as market conditions and the fund's objectives change.
Capitol Fundamentals
About Capitol Series Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Capitol Series Trust's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Capitol Series using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Capitol Series Trust based on its fundamental data. In general, a quantitative approach, as applied to this etf, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Pair Trading with Capitol Series
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 Capitol Series 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 Capitol Series will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Capitol Series could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Capitol Series 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 Capitol Series - 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 Capitol Series Trust to buy it.
The correlation of Capitol Series 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 Capitol Series moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capitol Series Trust 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 Capitol Series 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.
The market value of Capitol Series Trust is measured differently than its book value, which is the value of Capitol that is recorded on the company's balance sheet. Investors also form their own opinion of Capitol Series' value that differs from its market value or its book value, called intrinsic value, which is Capitol Series' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Capitol Series' market value can be influenced by many factors that don't directly affect Capitol Series' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Capitol Series' value and its price as these two are different measures arrived at by different means. Investors typically determine if Capitol Series is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Capitol Series' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.