Looking to invest in BNS? Look for alternatives because it performed worse than the broader market
11 Dec, 201813 min read
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BANK OF NOVA SCOTIA (Foreign) was among the worst performers today. It fell by -0.37% to close at 53.38. It's recent 5 day performance has been -0.43%, +0.62%, -1.05%, -1.53% and +0.94%.
BNS showed a bearish trend over the last 3 months. During this period BNS fell by -7.6% and saw a maximum drawdown of -13.4%. There were 2 short signals during this period that returned a cumulative of +1.44% to investors.
BNS has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 16 Feb, 2017 to 7 Nov, 2018. Over the last 2 years 11 months and 7 days, BNS outperformed the SP500 index on 51% days.
During the last three months BNS was mostly loss making and delivered on average -0.12% per day. It's best return during this period (of +2.67%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -2.64%) was on Tuesday, 20 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 13 Sep, 2018 and went on till 21 Sep, 2018. This bullish trend returned +4.43% to investors.
During the last year BNS had 5 profitable months and 7 loss making months. BNS returned profits in fewer months than SP500 index. BNS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -9.69% compared to -7.28% returned by SP500 index in Oct 2018. BNS and SP500 index, both had periods of 2 consecutive losing months. It is interesting to note that both BNS and SP500 index significantly outperform during months when quarterly/annual results are announced.
"Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.
BNS 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 BNS's volatility from 13 Sep, 2018 to 29 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 BNS 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 BNS. Therefore, SP500 must receive a lower allocation than BNS in your portfolio. SP500 index usually has shorter drawdown period than BNS.
On a general note (since you are interested in BNS), three instruments that deserve special mention are NFEC, NIHD and I. They have all outperformed the market and must be closely watched for investment opportunities.
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