Waiting to invest in ACCO? Avoid at the moment as it was among the worst performers
11 Dec, 201813 min read
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ACCO BRANDS CORP was among the worst performers on Tuesday. It delivered -1.69% to close at 7.0 which is it's 52 week low, down -51% from it's 52 week high.
ACCO showed a strong bearish trend over the last 3 months. During this period ACCO delivered -42.39% and saw a maximum drawdown of -42.39%. There was a short signal during this period which returned +42.39%.
ACCO has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Apr, 2017 to 11 Dec, 2018. One must note that ACCO is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 7 days, ACCO underperformed the SP500 index on 48% days. Which indicates that on days ACCO underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months ACCO was mostly loss making and delivered on average -0.83% per day. It's best return during this period (of +5.54%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -20.26%) was on Tuesday, 30 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 3 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -14.54% of investor capital.
The last 12 months saw ACCO's investors making profits in 4 months and incurring losses in 8 months. ACCO was less consistent in delivering monthly returs than SP500 index. ACCO was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -27.56% compared to -7.28% returned by SP500 index in Oct 2018. ACCO had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jul 2018 to Oct 2018) during which period it delivered -49.42%.
"There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor -the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know.
ACCO is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ACCO's volatility from 13 Sep, 2018 to 6 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that ACCO has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
SP500 index has more chance of extreme outcomes than ACCO. Therefore, SP500 must receive a lower allocation than ACCO in your portfolio. SP500 index usually has shorter drawdown period than ACCO.
On a general note (since you are interested in ACCO), ABMD is a mid cap that deserves to be closely tracked for investment opportunities.
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