DONALDSON CO INC has destroyed investor wealth on Tuesday. It lost -1.21% to close at 47.49. It is currently trading -19% below it's 52 week high of 59.18.
DCI showed a strong down trend over the last 3 months. During this period DCI lost -16.84% and saw a maximum drawdown of -19.75%. There was a short signal during this period which returned +9.39%.
During the last three months DCI was mostly loss making and delivered on average -0.27% per day. It's best return during this period (of +3.51%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -9.51%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 2 Oct, 2018. The trend delivered -2.34% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 8 Nov, 2018. This bullish trend delivered +8.82% to investors.
DCI had 7 profitable and 5 loss making months over the last year. During the last year, DCI underperformed SP500 index on monthly return basis. DCI was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -15.26% compared to -7.28% returned by SP500 index in Oct 2018. DCI had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both DCI and SP500 index significantly outperform during months when quarterly/annual results are announced.
The difference between playing the stock market and the horses is that one of the horses must win.
-- Joey Adams
DCI 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 DCI's volatility from 28 Sep, 2018 to 7 Dec, 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 DCI has significant positive skewness in it's return distribution. This indicates that investors can expect DCI to recover from drawdowns quickly. Which makes DCI a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
... 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