Joy for DAN investors as it manages to marginally outperform broader market
11 Dec, 201813 min read
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DANA INC outperformed the broader market on Tuesday. It increased by +2.19% to close at 14.01. On a day when the overall market breadth was 35%, it closed higher than 68% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.
DAN is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +23.07% for investors.
DAN has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 12 Jan, 2018 to 9 Nov, 2018. Over the last 2 years 11 months and 7 days, DAN underperformed the SP500 index on 48% days. Which indicates that on days DAN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months DAN was mostly loss making and delivered on average -0.44% per day. It's best return during this period (of +4.87%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -13.23%) was on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 4 losing days, which started on 9 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -10.75% of investor capital.
The last 12 months saw DAN's investors making profits in 2 months and incurring losses in 10 months. DAN was less consistent in delivering monthly returs than SP500 index. DAN was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -19.46% compared to -7.28% returned by SP500 index in Oct 2018. DAN 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 -43.04%. It is interesting to note that both DAN and SP500 index significantly outperform during months when quarterly/annual results are announced.
Courage is being scared to death, but saddling up anyway.
-- John Wayne
DAN 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 DAN'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 DAN has significant positive skewness in it's return distribution. This indicates that investors can expect DAN to recover from drawdowns quickly. Which makes DAN 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 DAN. Therefore, SP500 must receive a lower allocation than DAN in your portfolio. SP500 index usually has shorter drawdown period than DAN.
On a general note (since you are interested in DAN), two mid cap instruments that deserve special mention are AMD and TWTR. They have significantly outperformed the overall market.
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