HARTFORD FINANCIAL SERVICES GROUP INC performed worse than the broader market on Friday. It delivered -0.12% to close at 41.27 which is it's 52 week low, down -30% from it's 52 week high.
HIG showed a strong bearish trend over the last 3 months. During this period HIG delivered -16.98% and saw a maximum drawdown of -18.95%. There were 2 short signals during this period that returned a cumulative of +13.35% to investors.
HIG has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 15 Aug, 2017 to 3 Dec, 2018. Over the last 2 years 11 months and 10 days, HIG underperformed the SP500 index on 50% days. Which indicates that on days HIG underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
HIG returned losses on 58% days in the last three months. During this time, it delivered on average -0.29% per day. It delivered it's worst daily return of -3.87%, during this period, on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 29 Nov, 2018 and ended on 11 Dec, 2018. This bearish trend lost -8.21% of investor capital.
The last 12 months saw HIG's investors making profits in 3 months and incurring losses in 9 months. HIG was less consistent in delivering monthly returs than SP500 index. HIG was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -10.06% compared to -7.28% returned by SP500 index in Oct 2018. HIG had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -22.63%. It is interesting to note that both HIG and SP500 index significantly outperform during months when quarterly/annual results are announced.
The hardest thing to understand in the world is the income tax.
-- Albert Einstein
HIG 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 HIG's volatility from 17 Sep, 2018 to 29 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 HIG has significant positive skewness in it's return distribution. This indicates that investors can expect HIG to recover from drawdowns quickly. Which makes HIG a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in HIG derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.
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