DIGITAL REALTY TRUST, INC.

107.51 -6.4 (-5.96%) Sell

DLR is a falling knife, continues to bleed every investor trying to catch it

13 min read

DLR significantly underperformed today. On a longer term basis, investors in DIGITAL REALTY TRUST, INC. made +0.04% per day. Monday's performance of -5.96% was a significant underperformance compared to it's daily average.

[Themes containing DLR]

Buy-and-Hold investors in DLR experienced a maximum drawdown of -15.92% over the last three months. It returned -12.46% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

DLR has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, DLR outperformed the SP500 index on 54% days.

During the last three months DLR delivered profits on 55% days. However, it still managed to end this period in a loss. It's best return during this period (of +2.9%) was on Thursday, 6 Dec, 2018. While it's worst loss in the same period (of -9.24%) was on Friday, 26 Oct, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -8.72% losses to investors. This was followed by a bullish trend that started on 21 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +7.11% to investors.

On monthly basis, DLR delivered profits in more months over the last year, than losses. DLR delivered profits less regularly than SP500 index. DLR significantly outperformed SP500 index in Nov 2018, when it returned +11.41% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. DLR and SP500 index, both had periods of 6 consecutive profitable months.

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DLR 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 DLR's volatility from 18 Sep, 2018 to 30 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 DLR has significant positive skewness in it's return distribution. This indicates that investors can expect DLR to recover from drawdowns quickly. Which makes DLR 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 DLR. Therefore, SP500 must receive a lower allocation than DLR in your portfolio. DLR usually has shorter drawdown period than the SP500 index.

Based on your interest in DLR you may find it interesting to know that AAXN, KEYS and ZBRA are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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