Prayers for HY investors as it ranked among the worst performers
14 Dec, 201813 min read
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HYSTER-YALE MATERIALS HANDLING, INC. was among the worst performers today. It delivered -1.72% to close at 61.64. It's recent 5 day performance has been -1.26%, +4.2%, +0.03%, +0.48% and -3.81%.
HY is currently in a bearish trend. The previous short signal in HY has not been profitable for investors in general. If you are short on HY at current levels please make sure that your allocation is limited and that your portfolio is well diversified.
HY has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 3 Nov, 2017 to 16 Aug, 2018. Over the last 2 years 11 months and 10 days, HY underperformed the SP500 index on 50% days. Which indicates that on days HY underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
HY returned losses on 51% days in the last three months. During this time, it delivered on average -0.06% per day. It delivered it's best daily return of +5.45%, during this period, on Monday, 15 Oct, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +6.86%) started on 15 Nov, 2018 and went on till 21 Nov, 2018 while the bearish trend (which returned -9.02%) started on 21 Sep, 2018 and went on till 27 Sep, 2018.
The last 12 months saw HY's investors making profits in 3 months and incurring losses in 9 months. HY was less consistent in delivering monthly returs than SP500 index. HY was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -15.94% compared to -7.28% returned by SP500 index in Oct 2018. HY had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -18.9%. It is interesting to note that both HY and SP500 index significantly outperform during months when quarterly/annual results are announced.
Try to save something while your salary is small; It's impossible to save after you begin to earn more.
-- Jack Benny
HY 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 HY's volatility from 20 Sep, 2018 to 1 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 HY 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 HY. Therefore, SP500 must receive a lower allocation than HY in your portfolio. SP500 index usually has shorter drawdown period than HY.
Based on your interest in HY you may find it interesting to know that SBOT has shown remarkable performance and deserves to be on every investors' watchlist.
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