Don't invest in BR now, it is a really dangerous investment now
13 Dec, 201813 min read
Share with friends 
BROADRIDGE FINANCIAL SOLUTIONS, INC. has destroyed investor wealth on Thursday. It fell by -2.08% to close at 97.91. It is currently trading -28% below it's 52 week high of 137.72.
BR showed a strong bearish trend over the last 3 months. During this period BR fell by -27.36% and saw a maximum drawdown of -27.66%. There was a short signal during this period which returned +25.99%.
BR has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 4 Jan, 2016 to 6 Sep, 2018. Over the last 2 years 11 months and 9 days, BR outperformed the SP500 index on 55% days.
During the last three months BR was mostly loss making and delivered on average -0.49% per day. It's best return during this period (of +4.03%) was on Friday, 30 Nov, 2018. While it's worst loss in the same period (of -9.7%) was on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 4 losing days, which started on 8 Nov, 2018 and ended on 13 Nov, 2018. This bearish trend lost -3.03% of investor capital.
During the last year BR had 5 profitable months and 7 loss making months. BR returned profits in fewer months than SP500 index. BR significantly outperformed SP500 index in Aug 2018, when it returned +19.61% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BR had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -29.44%.
An investment in knowledge pays the best interest.
-- Benjamin Franklin
BR is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BR's volatility from 18 Sep, 2018 to 6 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.
SP500 index has more chance of extreme outcomes than BR. Therefore, SP500 must receive a lower allocation than BR in your portfolio.
On a general note (since you are interested in BR), if you are evaluating BR as an investment candidate, then you should read about BA which has delivered similar performance and can help diversify your portfolio.
... 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