Joy for AIT investors as it marginally outperforms
18 Dec, 201813 min read
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APPLIED INDUSTRIAL TECHNOLOGIES INC ranked among the best performers today. It delivered +0.7% to close at 56.05. It's recent 5 day performance has been -2.54%, -2.11%, -1.69%, +1.54% and -0.44%.
AIT is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +23.81% for investors.
AIT has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 25 Feb, 2016 to 21 Sep, 2018. Over the last 2 years 11 months and 14 days, AIT outperformed the SP500 index on 54% days.
During the last three months AIT was mostly loss making and delivered on average -0.55% per day. It's best return during this period (of +4.06%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -5.8%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 8 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -6.56% of investor capital.
During the last year AIT had 7 profitable months and 5 loss making months. AIT returned profits in fewer months than SP500 index. AIT was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.25% compared to -7.75% returned by SP500 index in Dec 2018. AIT had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.
"There is a huge amount of freedom that is derived from not fighting the market.
AIT is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in AIT's volatility from 21 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that AIT 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 AIT. Therefore, SP500 must receive a lower allocation than AIT in your portfolio. SP500 index usually has shorter drawdown period than AIT.
Based on your interest in AIT you may find it interesting to know that AMZN, MSFT and V are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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