AMERICAN HOMES 4 RENT was among the worst performers on Wednesday. It delivered -1.49% to close at 20.47. On a day when the overall market breadth was 35%, it closed higher than 70% of the market. In comparison, the benchmark SP500 index closed today at +0.54%.
Buy-and-Hold investors in AMH experienced a maximum drawdown of -13.99% over the last three months. It delivered -9.54% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +6.19%.
AMH has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 8 Aug, 2016 to 23 Feb, 2018. Over the last 2 years 11 months and 8 days, AMH underperformed the SP500 index on 46% days. Which indicates that on days AMH underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months AMH was mostly loss making and delivered on average -0.15% per day. It's best return during this period (of +1.87%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -4.86%) was on Friday, 2 Nov, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 20 Nov, 2018 and went on till 3 Dec, 2018. This bullish trend returned +5.74% to investors.
The last 12 months saw AMH's investors making profits in 5 months and incurring losses in 7 months. AMH was less consistent in delivering monthly returs than SP500 index. AMH significantly outperformed SP500 index in Jun 2018, when it returned +11.35% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. AMH had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -10.7%. It is interesting to note that both AMH and SP500 index significantly outperform during months when quarterly/annual results are announced.
Every time you borrow money, you're robbing your future self.
-- Nathan W. Morris
AMH 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 AMH's volatility from 14 Sep, 2018 to 2 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 AMH 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.
Based on your interest in AMH you may find it interesting to know that HPP, SCM and IVR have all performed similar to AMH and qualify as alternative investment candidates that must be evaluated for diversification.
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