EQUITY COMMONWEALTH

30.77 +0.54 (+1.75%) Buy

EQC investors make good profits

13 min read

EQUITY COMMONWEALTH delivered good returns today. It grew by +1.75% to close at 30.77. During the last week it lost -3.79% and saw a maximum drawdown of -3.79%.

[Themes containing EQC]

Buy-and-Hold investors in EQC experienced a maximum drawdown of -11.43% over the last three months. It lost -4.02% during this 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. The net profit from Short signals was +0.51%.

Trend

EQC has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, EQC underperformed the SP500 index on 49% days. Which indicates that on days EQC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months EQC delivered profits on 57% days. However, it still managed to end this period in a loss. It's best return during this period (of +2.25%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -9.1%) was on Friday, 5 Oct, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -2.69% losses to investors. This was followed by a bullish trend that started on 1 Nov, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +3.26% to investors.

EQC had 7 profitable and 5 loss making months over the last year. During the last year, EQC underperformed SP500 index on monthly return basis. EQC was also a less risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -7.4% compared to -7.75% returned by SP500 index in Dec 2018. EQC had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

"Buy not on optimism, but on arithmetic.

EQC 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 EQC's volatility from 21 Sep, 2018 to 26 Oct, 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 EQC 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.

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

On a general note (since you are interested in EQC), two mid cap instruments that deserve special mention are SQ and ABMD. They have significantly outperformed the overall market.

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