Cryptocurrency Q&A What is a good Z score for a CEF?

What is a good Z score for a CEF?

Sara Sara Mon Dec 30 2024 | 6 answers 1235
I am interested in understanding what constitutes a good Z score for a Closed-End Fund (CEF). I would like to know the ideal range or value that is considered favorable in this context. What is a good Z score for a CEF?

6 answers

EthereumEmpress EthereumEmpress Wed Jan 01 2025
Assessing the value of a fund can be done through various metrics, one of which is the z-score.

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FantasylitElation FantasylitElation Wed Jan 01 2025
A z-score less than -2 typically indicates that a fund is trading at a discount compared to its peers, suggesting it might be undervalued.

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CryptoAce CryptoAce Wed Jan 01 2025
Conversely, a z-score greater than +2 implies that the fund is trading at a premium, hinting at potential overvaluation.

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Bianca Bianca Wed Jan 01 2025
For instance, a fund with a z-score of 3.5 would fall into the category of being relatively expensive.

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Carlo Carlo Tue Dec 31 2024
This high z-score doesn't automatically equate to the fund being overvalued, as there could be other factors influencing its price.

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