BERKSHIRE HILLS BANCORP INC

31.95 -0.3 (-0.93%) Sell

The party never started for BHLB investors as it delivered massive losses

13 min read

BERKSHIRE HILLS BANCORP INC was among the worst performers today. It returned -0.93% to close at 31.95. During the last week it returned -6.44% and saw a maximum drawdown of -6.8% before bouncing back.

[Themes containing BHLB]

BHLB is currently in a down trend. The current bearish signal has generated a profit of +21.88% for investors in the last three months.

Trend

BHLB has been underperforming the SP500 index in recent time, after having outperformed till 28 Dec, 2016. Over the last 2 years 11 months and 3 days, BHLB underperformed the SP500 index on 47% days. Which indicates that on days BHLB underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months BHLB was mostly loss making and delivered on average -0.43% per day. It's best return during this period (of +2.49%) was on Wednesday, 3 Oct, 2018. While it's worst loss in the same period (of -6.13%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -17.59% losses to investors. This was followed by a bullish trend that started on 1 Nov, 2018 and ended on 6 Nov, 2018. This bullish trend delivered +3.43% to investors.

On monthly basis, BHLB delivered profits in more months over the last year, than losses. BHLB delivered profits less regularly than SP500 index. BHLB was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.47% compared to -7.28% returned by SP500 index in Oct 2018. BHLB had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

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BHLB 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 BHLB's volatility from 10 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BHLB has significant positive skewness in it's return distribution. This indicates that investors can expect BHLB to recover from drawdowns quickly. Which makes BHLB a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in BHLB), two instruments that have been extremely volatile in recent times are NVCN and VIPS. Investors in these instruments should consider reducing their exposure (to NVCN and VIPS) and diversifying their portfolios.

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