HEXCEL CORP

58.13 -0.95 (-1.64%) Sell

HXL is a falling knife, continues to bleed every investor trying to catch it

13 min read

HXL delivered massive losses today. On a longer term basis, investors in HEXCEL CORP made -0.04% per day. Tuesday's performance of -1.64% was a significant underperformance compared to it's daily average.

[Themes containing HXL]

Buy-and-Hold investors in HXL experienced a maximum drawdown of -16.44% over the last three months. It returned -10.98% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +10.98% for investors.

Trend

HXL has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, HXL underperformed the SP500 index on 49% days. Which indicates that on days HXL underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months HXL was mostly loss making and delivered on average -0.17% per day. It's best return during this period (of +3.53%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -4.16%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 18 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +2.49% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -7.44% of investor capital.

On monthly basis, HXL delivered profits and losses in equal number of months. HXL delivered profits less regularly than SP500 index. HXL was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -12.24% compared to -7.28% returned by SP500 index in Oct 2018. HXL had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both HXL and SP500 index significantly outperform during months when quarterly/annual results are announced.

I'm involved in the stock market, which is fun and, sometimes, very painful.
-- Regis Philbin

HXL is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in HXL's volatility from 13 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

SP500 index has more chance of extreme outcomes than HXL. Therefore, SP500 must receive a lower allocation than HXL in your portfolio.

Based on your interest in HXL you may find it interesting to know that IMTE, IX and ICPT are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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