Profit booking on the minds of IAC investors as it performed better than the broader market
14 Dec, 201813 min read
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IAC/INTERACTIVECORP delivered stellar performance today. It gained +1.37% to close at 183.95. During the last week it gained +2.63% and saw a maximum drawdown of -1.75% before bouncing back.
IAC is currently in a down trend. The current bearish signal has generated a profit of +4.13% for investors in the last three months.
IAC has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, IAC outperformed the SP500 index on 54% days.
IAC returned losses on 53% days in the last three months. During this time, it delivered on average -0.21% per day. It delivered it's worst daily return of -8.42%, during this period, on Monday, 19 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 10 Oct, 2018. The trend delivered -9.96% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +7.18% to investors.
IAC had 7 profitable and 5 loss making months over the last year. During the last year, IAC underperformed SP500 index on monthly return basis. IAC significantly outperformed SP500 index in Aug 2018, when it returned +33.92% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. IAC had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.
"Beware of little expenses. A small leak will sink a great ship.
IAC 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 IAC's volatility from 28 Sep, 2018 to 20 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 IAC has significant positive skewness in it's return distribution. This indicates that investors can expect IAC to recover from drawdowns quickly. Which makes IAC 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 IAC. Therefore, SP500 must receive a lower allocation than IAC in your portfolio. SP500 index usually has shorter drawdown period than IAC.
On a general note (since you are interested in IAC), three instruments that deserve special mention are SBOT, NSPR and AMRH. They have all outperformed the market and must be closely watched for investment opportunities.
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