31.89 +0.47 (+1.46%) Sell

BKU investors update their stop-losses higher

13 min read

BANKUNITED, INC. ranked better than it's peers today. It delivered +1.46% to close at 31.89. During the last week it delivered -0.81% and saw a maximum drawdown of -3.02% before bouncing back.

[Themes containing BKU]

BKU is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +3.79% for investors.


BKU has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 21 Jan, 2016 to 22 Oct, 2018. Over the last 2 years 11 months and 8 days, BKU underperformed the SP500 index on 51% days.

During the last three months BKU was mostly loss making and delivered on average -0.25% per day. It's best return during this period (of +4.42%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -5.84%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 8 losing days, which started on 21 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -6.89% of investor capital.

The last 12 months saw BKU's investors making profits in 4 months and incurring losses in 8 months. BKU was less consistent in delivering monthly returs than SP500 index. BKU was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -8.74% compared to -7.28% returned by SP500 index in Oct 2018. BKU had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jun 2018 to Oct 2018) during which period it delivered -23.57%.

What we really want to do is what we are really meant to do. When we do what we are meant to do, money comes to us, doors open for us, we feel useful, and the work we do feels like play to us.
-- Julia Cameron

BKU is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BKU's volatility from 21 Sep, 2018 to 26 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 BKU has significant positive skewness in it's return distribution. This indicates that investors can expect BKU to recover from drawdowns quickly. Which makes BKU a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

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

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