22.12 -0.06 (-0.27%) Sell

Stop-loss on the minds of HASI investors as it underperforms

13 min read

HANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. ranked worse than it's peers today. It fell by -0.27% to close at 22.12. During the last week it fell by -4.7% and saw a maximum drawdown of -4.86% before bouncing back.

HASI is currently in a bearish trend. The previous short signal in HASI has not been profitable for investors in general. If you are short on HASI at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


HASI has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 7 Sep, 2016 to 11 Jun, 2018. Over the last 2 years 11 months and 10 days, HASI underperformed the SP500 index on 48% days. Which indicates that on days HASI underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months HASI delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.99%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -3.98%) was on Thursday, 13 Dec, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 29 Oct, 2018 and went on till 8 Nov, 2018. This bullish trend returned +16.54% to investors.

During the last year HASI had 5 profitable months and 7 loss making months. HASI returned profits in fewer months than SP500 index. HASI was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -19.04% compared to -7.28% returned by SP500 index in Oct 2018. HASI had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

"A budget tells us what we can't afford, but it doesn't keep us from buying it.

HASI is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in HASI's volatility from 2 Oct, 2018 to 5 Nov, 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 HASI has significant positive skewness in it's return distribution. This indicates that investors can expect HASI to recover from drawdowns quickly. Which makes HASI 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 HASI. Therefore, SP500 must receive a lower allocation than HASI in your portfolio. SP500 index usually has shorter drawdown period than HASI.

Based on your interest in HASI you may find it interesting to know that AYTU has shown remarkable performance and deserves to be on every investors' watchlist.

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