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