16.82 -1.49 (-8.83%) Sell

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

13 min read

HAIN CELESTIAL GROUP INC has destroyed investor wealth today. It delivered -8.83% to close at 16.82. It's recent 5 day performance has been -3.91%, +0.42%, +1.7%, -1.98% and -0.62%.

[Themes containing HAIN]

HAIN showed a strong bearish trend over the last 3 months. During this period HAIN delivered -35.8% and saw a maximum drawdown of -38.7%. There was a short signal during this period which returned +35.8%.


HAIN has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 12 Aug, 2016 to 3 Dec, 2018. Over the last 2 years 11 months and 10 days, HAIN underperformed the SP500 index on 50% days. Which indicates that on days HAIN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months HAIN was mostly loss making and delivered on average -0.67% per day. It's best return during this period (of +4.49%) was on Monday, 24 Sep, 2018. While it's worst loss in the same period (of -13.85%) was on Thursday, 8 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -9.51% of investor capital.

The last 12 months saw HAIN's investors making profits in 2 months and incurring losses in 10 months. HAIN was less consistent in delivering monthly returs than SP500 index. HAIN was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -16.8% compared to -7.28% returned by SP500 index in Oct 2018. HAIN had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jan 2018 to May 2018) during which period it delivered -44.07%. It is interesting to note that both HAIN and SP500 index significantly outperform during months when quarterly/annual results are announced.

"There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor -the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know.

HAIN is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in HAIN's volatility from 19 Sep, 2018 to 8 Nov, 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 HAIN has significant positive skewness in it's return distribution. This indicates that investors can expect HAIN to recover from drawdowns quickly. Which makes HAIN 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 HAIN. Therefore, SP500 must receive a lower allocation than HAIN in your portfolio. HAIN usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in HAIN), three instruments that deserve special mention are AYTU, AMRH and TYHT. They have all outperformed the market and must be closely watched for investment opportunities.

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