AEROJET ROCKETDYNE HOLDINGS, INC.

34.66 -0.45 (-1.31%) Buy

AJRD investors herd to book profits while the going is good

13 min read

AEROJET ROCKETDYNE HOLDINGS, INC. delivered massive losses today. It lost -1.31% to close at 34.66. During the last week it lost -2.04% and saw a maximum drawdown of -4.41% before bouncing back.

[Themes containing AJRD]

Buy-and-Hold investors in AJRD experienced a maximum drawdown of -13.96% over the last three months. It returned +0.9% during this flat trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals.

Trend

AJRD has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, AJRD outperformed the SP500 index on 49% days. Which indicates that on days AJRD outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months AJRD delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +16.72%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.22%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 30 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +22.65% to investors. This was followed by a bearish trend that started on 16 Nov, 2018 and ended on 23 Nov, 2018. This bearish trend lost -7.67% of investor capital.

AJRD had 6 profitable and 6 loss making months over the last year. During the last year, AJRD underperformed SP500 index on monthly return basis. AJRD significantly outperformed SP500 index in Jul 2018, when it returned +15.13% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. AJRD had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both AJRD and SP500 index significantly outperform during months when quarterly/annual results are announced.

The hardest thing to understand in the world is the income tax.
-- Albert Einstein

AJRD is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in AJRD's volatility from 8 Oct, 2018 to 2 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AJRD 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 AJRD. Therefore, SP500 must receive a lower allocation than AJRD in your portfolio. SP500 index usually has shorter drawdown period than AJRD.

Based on your interest in AJRD you may find it interesting to know that V, MSFT and AMZN are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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