Looking to invest in HELE? Consider it, because it showed marginal outperformance
11 Dec, 201813 min read
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HELEN OF TROY LTD outperformed the broader market on Tuesday. It increased by +0.66% to close at 138.02. On a day when the overall market breadth was 35%, it closed higher than 7% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.
HELE showed a bullish trend over the last 3 months. During this period HELE increased by +9.76% and saw a maximum drawdown of -10.33%. There were 2 long signals during this period that returned a cumulative of +10.35% to investors.
HELE has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 26 Mar, 2018 to 23 Nov, 2018. Over the last 2 years 11 months and 7 days, HELE outperformed the SP500 index on 53% days.
During the last three months HELE was mostly profitable and delivered on average +0.16% per day. It's best return during this period (of +2.91%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -3.67%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 7 Nov, 2018 and went on till 19 Nov, 2018. This bullish trend returned +6.75% to investors.
During the last year HELE had 7 profitable months and 5 loss making months. HELE returned profits in fewer months than SP500 index. HELE significantly outperformed SP500 index in Jul 2018, when it returned +16.06% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. HELE and SP500 index, both had periods of 6 consecutive profitable months.
"I'm involved in the stock market, which is fun and, sometimes, very painful.
HELE 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 HELE's volatility from 13 Sep, 2018 to 10 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that HELE 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.
SP500 index has more chance of extreme outcomes than HELE. Therefore, SP500 must receive a lower allocation than HELE in your portfolio. SP500 index usually has shorter drawdown period than HELE.
On a general note (since you are interested in HELE), three instruments that are extremely volatile are EPIX, IMTE and ICPT. They must all be evaluated prudently and investors are better off avoiding them at the moment.
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