HUNTINGTON INGALLS INDUSTRIES, INC.

202.64 +2.05 (+1.01%) Sell

Joy for HII investors as it performed better than the broader market

13 min read

HUNTINGTON INGALLS INDUSTRIES, INC. showed marginal outperformance today. It increased by +1.01% to close at 202.64. During the last week it delivered -0.12% and saw a maximum drawdown of -2.17% before bouncing back.

[Themes containing HII]

HII is currently in a bearish trend. The current bearish signal has generated a profit of +13.06% for investors in the last three months.

Trend

HII has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 4 Jan, 2016 to 21 Feb, 2018. Over the last 2 years 11 months and 8 days, HII outperformed the SP500 index on 54% days.

During the last three months HII delivered profits on 53% days. However, it still managed to end this period in a loss. It's best return during this period (of +4.84%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -5.99%) was on Thursday, 8 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 8 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -14.07% of investor capital.

The last 12 months saw HII's investors making profits in 5 months and incurring losses in 7 months. HII was less consistent in delivering monthly returs than SP500 index. HII was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.11% compared to -7.28% returned by SP500 index in Oct 2018. HII had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Mar 2018 to Jun 2018) during which period it delivered -16.69%. It is interesting to note that both HII and SP500 index significantly outperform during months when quarterly/annual results are announced.

Greed is not a financial issue. It's a heart issue.
-- Andy Stanley

HII 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 HII's volatility from 13 Sep, 2018 to 9 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that HII has significant positive skewness in it's return distribution. This indicates that investors can expect HII to recover from drawdowns quickly. Which makes HII 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 HII. Therefore, SP500 must receive a lower allocation than HII in your portfolio. SP500 index usually has shorter drawdown period than HII.

Based on your interest in HII you may find it interesting to know that TWTR is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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