94.72 -1.79 (-1.89%) Buy

HRC investors herd to book profits while the going is good

13 min read

HILL-ROM HOLDINGS, INC. was among the worst performers on Thursday. It fell by -1.89% to close at 94.72. It is currently trading +18% above it's 52 week low of 79.73 and is down only -4% from it's 52 week high.

[Themes containing HRC]

Buy-and-Hold investors in HRC experienced a maximum drawdown of -13.42% over the last three months. It fell by -1.2% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals.


HRC has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 17 Mar, 2016 to 12 Dec, 2018. Over the last 2 years 11 months and 9 days, HRC outperformed the SP500 index on 57% days.

During the last three months HRC was mostly loss making and delivered on average -0.0% per day. It's best return during this period (of +4.93%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -3.18%) was on Monday, 17 Sep, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 31 Oct, 2018 and went on till 8 Nov, 2018. This bullish trend returned +16.89% to investors.

During the last year HRC had 7 profitable months and 5 loss making months. HRC returned profits in fewer months than SP500 index. HRC significantly outperformed SP500 index in Nov 2018, when it returned +15.32% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. HRC had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

"When you're building a company, you need to continually strengthen every component - finance, strategic partnerships, executive team, and relationships with every last constituency.

HRC 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 HRC's volatility from 26 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 HRC has significant positive skewness in it's return distribution. This indicates that investors can expect HRC to recover from drawdowns quickly. Which makes HRC 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 HRC. Therefore, SP500 must receive a lower allocation than HRC in your portfolio. HRC usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in HRC), three instruments that are extremely volatile are VIPS, ICPT and OPNT. They must all be evaluated prudently and investors are better off avoiding them at the moment.

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