33.63 -1.05 (-3.11%) Sell

Don't even consider investing in FCB now, it is a high risk investment

13 min read

FCB was among the worst performers today. On a longer term basis, investors in FCB FINANCIAL HOLDINGS, INC. made -0.06% per day. Friday's performance of -3.11% was a significant underperformance compared to it's daily average.

[Themes containing FCB]

FCB showed a strong down trend over the last 3 months. During this period FCB lost -31.16% and saw a maximum drawdown of -32.2%. There was a short signal during this period which returned +31.16%.


FCB has been underperforming the SP500 index in recent time, after having outperformed till 6 Jun, 2018. FCB is currently at it's worst performance to the SP500 index and therefore does not make a good investment candidate. Over the last 2 years 11 months and 10 days, FCB underperformed the SP500 index on 48% days. Which indicates that on days FCB underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months FCB was mostly loss making and delivered on average -0.57% per day. It's best return during this period (of +3.1%) was on Monday, 26 Nov, 2018. While it's worst loss in the same period (of -7.42%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 2 Oct, 2018. The trend delivered -6.5% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +4.61% to investors.

FCB had 5 profitable and 7 loss making months over the last year. During the last year, FCB underperformed SP500 index on monthly return basis. FCB was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.23% compared to -7.28% returned by SP500 index in Oct 2018. FCB had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

If you would be wealthy, think of saving as well as getting.
-- Benjamin Franklin

FCB 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 FCB's volatility from 28 Sep, 2018 to 24 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 FCB has significant positive skewness in it's return distribution. This indicates that investors can expect FCB to recover from drawdowns quickly. Which makes FCB 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 FCB. Therefore, SP500 must receive a lower allocation than FCB in your portfolio. SP500 index usually has shorter drawdown period than FCB.

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

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