Looking to invest in HRL? Look for alternatives because it trailed the broader market

HRL was among the worst performers today. On a longer term basis, investors in HORMEL FOODS CORP made -0.06% per day. Friday's performance of -1.63% was a underperformance compared to it's daily average.

[Themes containing HRL]

HRL showed a bullish trend over the last 3 months. During this period HRL increased by +8.57% and saw a maximum drawdown of -5.24%. There was a long signal during this period which returned +8.57%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

HRL has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 16 Feb, 2016 to 26 Jan, 2018. Over the last 2 years 11 months and 10 days, HRL underperformed the SP500 index on 48% days. Which indicates that on days HRL underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months HRL was mostly profitable and delivered on average +0.14% per day. It's best return during this period (of +3.67%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -2.27%) was on Wednesday, 19 Sep, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +2.77%) started on 7 Nov, 2018 and went on till 12 Nov, 2018 while the bearish trend (which returned -2.8%) started on 24 Sep, 2018 and went on till 27 Sep, 2018.

During the last year HRL had 7 profitable months and 5 loss making months. HRL returned profits in fewer months than SP500 index. HRL significantly outperformed SP500 index in Oct 2018, when it returned +11.04% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. HRL had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both HRL and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Money is like manure. You have to spread it around or it smells.

HRL 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 HRL's volatility from 5 Oct, 2018 to 5 Nov, 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 HRL has significant positive skewness in it's return distribution. This indicates that investors can expect HRL to recover from drawdowns quickly. Which makes HRL a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in HRL derivatives at this moment can consider 'Married Put' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than HRL. Therefore, SP500 must receive a lower allocation than HRL in your portfolio. SP500 index usually has shorter drawdown period than HRL.

Based on your interest in HRL you may find it interesting to know that ABMD and TWTR are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.