BUNGE LTD

58.47 -1.15 (-1.96%) Buy

Are you evaluating investing in BG? Wait as it trailed the broader market

13 min read

BUNGE LTD was among the worst performers on Tuesday. It lost -1.96% to close at 58.47. On a day when the overall market breadth was 35%, it closed higher than 68% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing BG]

BG showed a down trend over the last 3 months. During this period BG lost -8.18% and saw a maximum drawdown of -19.36%. There was a short signal during this period which returned +9.4%.

Trend

BG has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, BG underperformed the SP500 index on 51% days.

During the last three months BG delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.96%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -9.14%) was on Wednesday, 31 Oct, 2018. There was initially a bullish trend during this period which started on 13 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +4.7% to investors. This was followed by a bearish trend that started on 12 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -7.93% of investor capital.

BG had 4 profitable and 8 loss making months over the last year. During the last year, BG underperformed SP500 index on monthly return basis. BG significantly outperformed SP500 index in Jan 2018, when it returned +16.83% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BG had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -11.21%. It is interesting to note that both BG and SP500 index significantly outperform during months when quarterly/annual results are announced.

"We need real campaign finance reform to loosen the grip of special interests on politics.

BG is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in BG's volatility from 14 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BG has significant positive skewness in it's return distribution. This indicates that investors can expect BG to recover from drawdowns quickly. Which makes BG 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 BG. Therefore, SP500 must receive a lower allocation than BG in your portfolio. SP500 index usually has shorter drawdown period than BG.

Based on your interest in BG you may find it interesting to know that OPNT is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to OPNT or sufficiently diversifying your portfolio.

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