154.58 +2.79 (+1.8%) Sell

Joy for DHIL investors as it ranks better than it's peers but, has not managed to breakout

13 min read

DIAMOND HILL INVESTMENT GROUP INC outperformed today. It surged by +1.8% to close at 154.58. During the last week it surged by +1.48% and saw a maximum drawdown of -0.84% before bouncing back.

DHIL is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +2.32% for investors.


DHIL has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 17 Feb, 2016 to 24 Sep, 2018. Over the last 2 years 11 months and 14 days, DHIL underperformed the SP500 index on 51% days.

DHIL returned losses on 59% days in the last three months. During this time, it delivered on average -0.1% per day. It delivered it's worst daily return of -4.4%, during this period, on Thursday, 6 Dec, 2018. The longest stort-term trend during this period was 8 losing days, which started on 29 Nov, 2018 and ended on 11 Dec, 2018. This bearish trend lost -16.52% of investor capital.

The last 12 months saw DHIL's investors making profits in 4 months and incurring losses in 8 months. DHIL was less consistent in delivering monthly returs than SP500 index. DHIL was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -11.36% compared to -7.75% returned by SP500 index in Dec 2018. DHIL had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jun 2018 to Sep 2018) during which period it delivered -16.19%. It is interesting to note that both DHIL 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

DHIL is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in DHIL's volatility from 11 Oct, 2018 to 10 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that DHIL 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.

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

Based on your interest in DHIL you may find it interesting to know that EIX and CCU have both performed similar to DHIL and can be considered by investors as alternative investment options.

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