ALTISOURCE PORTFOLIO SOLUTIONS S.A. ranked among the worst performers on Friday. It delivered -3.16% to close at 21.46. It is currently trading -42% below it's 52 week high of 37.52.
ASPS showed a strong bearish trend over the last 3 months. During this period ASPS delivered -37.4% and saw a maximum drawdown of -38.67%. There were 3 short signals during this period that returned a cumulative of +31.07% to investors.
ASPS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 18 Apr, 2017 to 8 Nov, 2018. Over the last 2 years 11 months and 10 days, ASPS underperformed the SP500 index on 44% days. Which indicates that on days ASPS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
ASPS returned losses on 64% days in the last three months. During this time, it delivered on average -0.71% per day. It delivered it's worst daily return of -7.11%, during this period, on Tuesday, 23 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 25 Sep, 2018 and ended on 3 Oct, 2018. This bearish trend lost -8.05% of investor capital.
The last 12 months saw ASPS's investors making profits in 4 months and incurring losses in 8 months. ASPS was less consistent in delivering monthly returs than SP500 index. ASPS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -21.16% compared to -7.28% returned by SP500 index in Oct 2018. ASPS 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 -47.51%. It is interesting to note that both ASPS and SP500 index significantly outperform during months when quarterly/annual results are announced.
Minimizing downside risk while maximizing the upside is a powerful concept.
-- Mohnish Pabrai
ASPS 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 ASPS's volatility from 17 Sep, 2018 to 31 Oct, 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 ASPS has significant positive skewness in it's return distribution. This indicates that investors can expect ASPS to recover from drawdowns quickly. Which makes ASPS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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