CANON INC (FOREIGN)

27.44 -0.09 (-0.33%) Sell

CAJ investors looking to preserve capital

13 min read

CANON INC (Foreign) ranked among the worst performers today. It returned -0.33% to close at 27.44. During the last week it returned -2.07% and saw a maximum drawdown of -2.07%.

[Themes containing CAJ]

Buy-and-Hold investors in CAJ experienced a maximum drawdown of -14.44% over the last three months. It returned -9.94% during this down trending period. There were no long signals during this period, where the short signal generated good profits of +9.94% for investors.

Trend

CAJ has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, CAJ underperformed the SP500 index on 48% days. Which indicates that on days CAJ underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

CAJ 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 worst daily return of -4.25%, during this period, on Thursday, 25 Oct, 2018. There was initially a bullish trend during this period which started on 11 Oct, 2018 and went on till 16 Oct, 2018. The bullish trend returned +2.75% to investors. This was followed by a bearish trend that started on 22 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -11.56% of investor capital.

On monthly basis, CAJ delivered losses in more months over the last year, than profits. CAJ delivered profits less regularly than SP500 index. CAJ was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -11.91% compared to -7.28% returned by SP500 index in Oct 2018. CAJ had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -18.79%. It is interesting to note that both CAJ and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand

CAJ is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in CAJ's volatility from 26 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CAJ has significant positive skewness in it's return distribution. This indicates that investors can expect CAJ to recover from drawdowns quickly. Which makes CAJ a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in CAJ you may find it interesting to know that TWTR is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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