CRAFT BREW ALLIANCE, INC. significantly underperformed today. It returned -2.99% to close at 15.59. It's recent 5 day performance has been +0.75%, +0.82%, +1.09%, -0.95% and -1.37%.
BREW showed a strong down trend over the last 3 months. During this period BREW returned -11.17% and saw a maximum drawdown of -16.82%. There were 2 short signals during this period that returned a cumulative of +0.54% to investors.
BREW has been underperforming the SP500 index in recent time, after having outperformed till 29 Aug, 2016. Over the last 2 years 11 months and 10 days, BREW outperformed the SP500 index on 50% days. Which indicates that on days BREW outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.
BREW returned losses on 61% days in the last three months. During this time, it delivered on average -0.16% per day. It delivered it's best daily return of +9.72%, during this period, on Thursday, 4 Oct, 2018. There was initially a bullish trend during this period which started on 25 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +9.83% to investors. This was followed by a bearish trend that started on 15 Nov, 2018 and ended on 26 Nov, 2018. This bearish trend lost -7.8% of investor capital.
On monthly basis, BREW delivered losses in more months over the last year, than profits. BREW delivered profits less regularly than SP500 index. BREW significantly outperformed SP500 index in Oct 2018, when it returned +13.98% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BREW had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both BREW and SP500 index significantly outperform during months when quarterly/annual results are announced.
Risk comes from not knowing what you're doing.
-- Warren Buffett
BREW 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 BREW's volatility from 17 Sep, 2018 to 5 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that BREW 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.
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