Search for alternative investments is on for FTS investors as it performed worse than the broader market

FTS delivered massive losses today. On a longer term basis, investors in FORTIS INC. (Foreign) made +0.01% per day. Friday's performance of -1.05% was a significant underperformance compared to it's daily average.

[Themes containing FTS]

Buy-and-Hold investors in FTS experienced a maximum drawdown of -3.68% over the last three months. It gained +6.24% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +0.15%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

FTS has been outperforming the SP500 index in recent time. Over the last 2 years and 2 months, FTS underperformed the SP500 index on 50% days. Which indicates that on days FTS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

FTS was profitable on 53% days in the last three months. During this time, it delivered on average +0.1% per day. It delivered it's best daily return of +3.55%, during this period, on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 5 Nov, 2018 and went on till 16 Nov, 2018. The bullish trend returned +7.88% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -1.96% of investor capital.

FTS had 5 profitable and 7 loss making months over the last year. During the last year, FTS underperformed SP500 index on monthly return basis. FTS was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -7.58% compared to -7.28% returned by SP500 index in Oct 2018. FTS had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both FTS and SP500 index significantly outperform during months when quarterly/annual results are announced.

If you are standing on the platform when the train has pulled away, It's not going to back up for you. When a bull market takes off, It's not going to back up for you.
-- Don Connelly

FTS 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 FTS's volatility from 18 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 FTS 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.

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

On a general note (since you are interested in FTS), if you are an investor in IX, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.