139.4 -0.35 (-0.25%) Sell

HRS investors disappointed by market underperformance

13 min read

HARRIS CORP ranked among the worst performers today. It returned -0.25% to close at 139.4. It's recent 5 day performance has been +0.51%, -2.63%, -0.1%, -0.13% and -0.33%.

[Themes containing HRS]

HRS is currently in a down trend. Over the last three months 3 bearish signals have generated a profit of +4.32% for investors.


HRS has been underperforming the SP500 index in recent time, after having outperformed till 15 Oct, 2018. Over the last 2 years 11 months and 3 days, HRS outperformed the SP500 index on 55% days.

HRS returned losses on 58% days in the last three months. During this time, it delivered on average -0.2% per day. It delivered it's best daily return of +11.87%, during this period, on Monday, 15 Oct, 2018. There was initially a bullish trend during this period which started on 10 Sep, 2018 and went on till 18 Sep, 2018. The bullish trend returned +4.18% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -8.7% of investor capital.

On monthly basis, HRS delivered losses in more months over the last year, than profits. HRS delivered profits less regularly than SP500 index. HRS significantly outperformed SP500 index in Jul 2018, when it returned +13.0% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. HRS had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Apr 2018 to Jun 2018) during which period it delivered -9.75%. It is interesting to note that both HRS and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Finance is a gun. Politics is knowing when to pull the trigger.

HRS 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 HRS's volatility from 12 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that HRS has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

On a general note (since you are interested in HRS), if you are evaluating HRS as an investment candidate, then you should read about GIB which has delivered similar performance and can help diversify your portfolio.

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