Are you evaluating investing in BIO? Avoid as it delivered massive losses

BIO-RAD LABORATORIES, INC. delivered massive losses on Monday. It lost -1.94% to close at 243.02. On a day when the overall market breadth was 34%, it closed higher than 7% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing BIO]

BIO showed a strong down trend over the last 3 months. During this period BIO lost -18.58% and saw a maximum drawdown of -22.36%. There was a short signal during this period which returned +18.58%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

BIO has been underperforming the SP500 index in recent time, after having outperformed till 14 Aug, 2018. Over the last 2 years 11 months and 10 days, BIO outperformed the SP500 index on 50% days. Which indicates that on days BIO outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months BIO was mostly loss making and delivered on average -0.32% per day. It's best return during this period (of +4.15%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -3.98%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -10.51% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 8 Nov, 2018. This bullish trend delivered +4.91% to investors.

BIO had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of BIO and SP500 index were the same. BIO significantly outperformed SP500 index in May 2018, when it returned +13.17% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BIO had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both BIO and SP500 index significantly outperform during months when quarterly/annual results are announced.

Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
-- Charles Dickens

BIO 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 BIO's volatility from 19 Sep, 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 BIO 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 BIO. Therefore, SP500 must receive a lower allocation than BIO in your portfolio. SP500 index usually has shorter drawdown period than BIO.

Based on your interest in BIO you may find it interesting to know that IMTE and IX are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).