BOISE CASCADE CO underperformed today. It returned -0.52% to close at 23.18. During the last week it returned -3.78% and saw a maximum drawdown of -3.78%.
Buy-and-Hold investors in BCC experienced a maximum drawdown of -43.46% over the last three months. It returned -43.46% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +43.46% for investors.
BCC has been underperforming the SP500 index in recent time, after having outperformed till 5 Jun, 2018. Over the last 2 years 11 months and 10 days, BCC underperformed the SP500 index on 48% days. Which indicates that on days BCC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
BCC returned losses on 64% days in the last three months. During this time, it delivered on average -0.87% per day. It delivered it's worst daily return of -7.44%, during this period, on Tuesday, 6 Nov, 2018. There was initially a bearish trend during this period which started on 25 Sep, 2018 and went on till 4 Oct, 2018. The trend delivered -11.61% losses to investors. This was followed by a bullish trend that started on 31 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +6.98% to investors.
On monthly basis, BCC delivered losses in more months over the last year, than profits. BCC delivered profits less regularly than SP500 index. BCC was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -15.79% compared to -7.28% returned by SP500 index in Oct 2018. BCC 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 -56.18%. It is interesting to note that both BCC and SP500 index significantly outperform during months when quarterly/annual results are announced.
The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger
BCC 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 BCC's volatility from 18 Sep, 2018 to 9 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 BCC has significant positive skewness in it's return distribution. This indicates that investors can expect BCC to recover from drawdowns quickly. Which makes BCC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Based on your interest in BCC you may find it interesting to know that GNK is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to GNK or sufficiently diversifying your portfolio.
... 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