ATKR is a falling knife, continues to bleed every investor trying to catch it
17 Dec, 201813 min read
Share with friends 
ATKORE INTERNATIONAL GROUP INC. was among the worst performers on Monday. It delivered -3.05% to close at 19.74. On a day when the overall market breadth was 34%, it closed higher than 14% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
ATKR is currently in a bearish trend. The current bearish signal has generated a profit of +24.66% for investors in the last three months.
ATKR has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 1 Feb, 2017 to 22 Aug, 2017. Over the last 2 years 6 months and 4 days, ATKR outperformed the SP500 index on 52% days.
During the last three months ATKR was mostly loss making and delivered on average -0.4% per day. It's best return during this period (of +17.65%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -8.47%) was on Tuesday, 20 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -18.11% of investor capital.
The last 12 months saw ATKR's investors making profits in 5 months and incurring losses in 7 months. ATKR was less consistent in delivering monthly returs than SP500 index. ATKR was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -25.67% compared to -7.28% returned by SP500 index in Oct 2018. ATKR had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -23.05%. It is interesting to note that both ATKR and SP500 index significantly outperform during months when quarterly/annual results are announced.
"Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.
ATKR 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 ATKR's volatility from 19 Sep, 2018 to 29 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that ATKR has significant positive skewness in it's return distribution. This indicates that investors can expect ATKR to recover from drawdowns quickly. Which makes ATKR 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 ATKR. Therefore, SP500 must receive a lower allocation than ATKR in your portfolio. SP500 index usually has shorter drawdown period than ATKR.
On a general note (since you are interested in ATKR), two instruments that have been extremely volatile in recent times are GNK and IX. Investors in these instruments should consider reducing their exposure (to GNK and IX) and diversifying their portfolios.
... 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