A10 NETWORKS, INC.

6.27 -0.12 (-1.88%) Sell

ATEN investors disappointed by market underperformance

13 min read

A10 NETWORKS, INC. is a falling knife that can bleed you if you catch it on Friday. It returned -1.88% to close at 6.27. On a day when the overall market breadth was 35%, it closed higher than 86% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing ATEN]

ATEN is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for ATEN's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -0.48%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to ATEN.

Trend

ATEN has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, ATEN underperformed the SP500 index on 48% days. Which indicates that on days ATEN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ATEN delivered losses on 61% days. However, it still managed to end this period in a profit. It's best return during this period (of +6.02%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -2.75%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 10 Oct, 2018. The trend delivered -8.54% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +10.06% to investors.

On monthly basis, ATEN delivered profits and losses in equal number of months. ATEN delivered profits less regularly than SP500 index. ATEN was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -20.9% compared to -7.28% returned by SP500 index in Oct 2018. ATEN had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

I'm only rich because I know when I'm wrong..I basically have survived by recognizing my mistakes.
-- George Soros

ATEN 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 ATEN's volatility from 20 Sep, 2018 to 23 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 ATEN has significant positive skewness in it's return distribution. This indicates that investors can expect ATEN to recover from drawdowns quickly. Which makes ATEN 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 ATEN. Therefore, SP500 must receive a lower allocation than ATEN in your portfolio. ATEN usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in ATEN), two small cap instruments that deserve special mention are PTC and AAXN. They have significantly outperformed the overall market.

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