APTARGROUP INC

98.64 -1.67 (-1.69%) Sell

ATR investors incur serious losses

13 min read

APTARGROUP INC was among the worst performers today. It delivered -1.69% to close at 98.64. During the last week it delivered -0.03% and saw a maximum drawdown of -1.69% before bouncing back.

[Themes containing ATR]

Buy-and-Hold investors in ATR experienced a maximum drawdown of -11.24% over the last three months. It delivered -11.24% during this strong 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 +0.89%.

Trend

ATR has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 29 Jan, 2018 to 20 Nov, 2018. Over the last 2 years 11 months and 10 days, ATR outperformed the SP500 index on 53% days.

During the last three months ATR was mostly loss making and delivered on average -0.18% per day. It's best return during this period (of +3.38%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -3.47%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -5.66% of investor capital.

The last 12 months saw ATR's investors making profits in 9 months and incurring losses in 3 months. During the last year, ATR delivered profits in more months than SP500 index. ATR significantly outperformed SP500 index in Jul 2018, when it returned +9.45% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ATR had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both ATR and SP500 index significantly outperform during months when quarterly/annual results are announced.

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.

ATR is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ATR's volatility from 8 Oct, 2018 to 2 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 ATR 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.

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

On a general note (since you are interested in ATR), three instruments that deserve special mention are NFEC, DFBG and TPNL. They have all outperformed the market and must be closely watched for investment opportunities.

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