ARCONIC INC.

19.74 -0.2 (-1.0%) Sell

ARNC investors disappointed by market underperformance

13 min read

ARCONIC INC. was among the worst performers on Friday. It returned -1.0% to close at 19.74. It is currently trading -35% below it's 52 week high of 30.84.

[Themes containing ARNC]

Buy-and-Hold investors in ARNC experienced a maximum drawdown of -17.86% over the last three months. It returned -13.12% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

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

ARNC returned losses on 53% days in the last three months. During this time, it delivered on average -0.2% per day. It delivered it's best daily return of +7.14%, during this period, on Monday, 8 Oct, 2018. There was initially a bullish trend during this period which started on 27 Sep, 2018 and went on till 3 Oct, 2018. The bullish trend returned +3.4% to investors. This was followed by a bearish trend that started on 18 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -12.34% of investor capital.

On monthly basis, ARNC delivered losses in more months over the last year, than profits. ARNC delivered profits less regularly than SP500 index. ARNC significantly outperformed SP500 index in Jul 2018, when it returned +28.65% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ARNC had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -48.27%. It is interesting to note that both ARNC and SP500 index significantly outperform during months when quarterly/annual results are announced.

If you would be wealthy, think of saving as well as getting.
-- Benjamin Franklin

ARNC is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ARNC's volatility from 4 Oct, 2018 to 1 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 ARNC has significant positive skewness in it's return distribution. This indicates that investors can expect ARNC to recover from drawdowns quickly. Which makes ARNC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than ARNC. Therefore, SP500 must receive a lower allocation than ARNC in your portfolio. ARNC usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in ARNC), two instruments that deserve special mention are NFEC and PRQR. They have significantly outperformed the overall market this year.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter