HMS HOLDINGS CORP delivered good returns on Tuesday. It grew by +1.7% to close at 34.64. It is currently trading +130% above it's 52 week low of 15.06 and is down only -7% from it's 52 week high.
HMSY showed a up trend over the last 3 months. During this period HMSY grew by +3.65% and saw a maximum drawdown of -14.63%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in HMSY till volatility reduces and a clear trend emerges.
During the last three months HMSY was mostly profitable and delivered on average +0.09% per day. It's best return during this period (of +15.64%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -5.86%) was on Monday, 19 Nov, 2018. There was initially a bearish trend during this period which started on 26 Oct, 2018 and went on till 31 Oct, 2018. The trend delivered -4.19% losses to investors. This was followed by a bullish trend that started on 1 Nov, 2018 and ended on 8 Nov, 2018. This bullish trend delivered +27.26% to investors.
HMSY had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of HMSY and SP500 index were the same. HMSY significantly outperformed SP500 index in Aug 2018, when it returned +33.93% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. HMSY had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
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HMSY is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in HMSY's volatility from 28 Sep, 2018 to 5 Nov, 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 HMSY has significant positive skewness in it's return distribution. This indicates that investors can expect HMSY to recover from drawdowns quickly. Which makes HMSY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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