INSTALLED BUILDING PRODUCTS, INC.

34.81 +1.37 (+3.94%) Sell

Want to invest in IBP? Consider as it performed better than the broader market

13 min read

INSTALLED BUILDING PRODUCTS, INC. was among the best performers today. It returned +3.94% to close at 34.81. It's recent 5 day performance has been -3.15%, -2.62%, +0.62%, +1.29% and -10.14%.

[Themes containing IBP]

IBP showed a strong down trend over the last 3 months. During this period IBP returned -27.93% and saw a maximum drawdown of -38.55%. There was a short signal during this period which returned +27.93%.

Trend

IBP has been underperforming the SP500 index in recent time, after having outperformed till 29 Nov, 2017. Over the last 2 years 11 months and 8 days, IBP outperformed the SP500 index on 51% days.

During the last three months IBP was mostly loss making and delivered on average -0.45% per day. It's best return during this period (of +15.82%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -10.14%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 20 Sep, 2018 and went on till 2 Oct, 2018. The trend delivered -22.08% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +5.74% to investors.

On monthly basis, IBP delivered losses in more months over the last year, than profits. IBP delivered profits less regularly than SP500 index. IBP significantly outperformed SP500 index in Nov 2018, when it returned +27.15% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. IBP had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jun 2018 to Oct 2018) during which period it delivered -61.09%. It is interesting to note that both IBP and SP500 index significantly outperform during months when quarterly/annual results are announced.

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger

IBP 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 IBP's volatility from 4 Oct, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that IBP 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 IBP. Therefore, SP500 must receive a lower allocation than IBP in your portfolio. SP500 index usually has shorter drawdown period than IBP.

On a general note (since you are interested in IBP), two instruments that deserve special mention are AMRH and EPIX. They have significantly outperformed the overall market.

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