18.65 -0.38 (-2.05%) Buy

Want to invest in ETH? Wait as it ranked worse than it's peers

13 min read

ETHAN ALLEN INTERIORS INC ranked among the worst performers on Friday. It returned -2.05% to close at 18.65 which is it's 52 week low, down -36% from it's 52 week high.

[Themes containing ETH]

ETH showed a strong down trend over the last 3 months. During this period ETH returned -14.25% and saw a maximum drawdown of -15.42%. There was a short signal during this period which returned +5.47%.


ETH has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, ETH underperformed the SP500 index on 47% days. Which indicates that on days ETH underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ETH was mostly loss making and delivered on average -0.22% per day. It's best return during this period (of +6.0%) was on Thursday, 11 Oct, 2018. While it's worst loss in the same period (of -4.9%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 19 Oct, 2018. The trend delivered -6.28% losses to investors. This was followed by a bullish trend that started on 20 Nov, 2018 and ended on 26 Nov, 2018. This bullish trend delivered +6.52% to investors.

On monthly basis, ETH delivered losses in more months over the last year, than profits. ETH delivered profits less regularly than SP500 index. ETH was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -13.41% compared to -7.28% returned by SP500 index in Oct 2018. ETH had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jan 2018 to Apr 2018) during which period it delivered -22.55%.

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ETH 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 ETH's volatility from 18 Sep, 2018 to 26 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 ETH has significant positive skewness in it's return distribution. This indicates that investors can expect ETH to recover from drawdowns quickly. Which makes ETH 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 ETH. Therefore, SP500 must receive a lower allocation than ETH in your portfolio. SP500 index usually has shorter drawdown period than ETH.

On a general note (since you are interested in ETH), three large cap instruments that deserve special mention are UNH, MSFT and V. They have all outperformed the market and must be closely watched for investment opportunities.

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