INNOVIVA, INC.

16.81 -0.4 (-2.38%) Buy

INVA investors doing a reality check

13 min read

INNOVIVA, INC. significantly underperformed on Friday. It returned -2.38% to close at 16.81. On a day when the overall market breadth was 35%, it closed higher than 77% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing INVA]

Buy-and-Hold investors in INVA experienced a maximum drawdown of -11.31% over the last three months. It grew by +13.81% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

Trend

INVA has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, INVA outperformed the SP500 index on 52% days.

During the last three months INVA delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.17%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -6.31%) was on Wednesday, 31 Oct, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +6.19% 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 -7.05% of investor capital.

On monthly basis, INVA delivered profits in more months over the last year, than losses. INVA delivered profits less regularly than SP500 index. INVA significantly outperformed SP500 index in Nov 2018, when it returned +30.8% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. INVA had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

"Finance is not merely about making money. It's about achieving our deep goals and protecting the fruits of our labor. It's about stewardship and, therefore, about achieving the good society.

INVA 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 INVA's volatility from 17 Sep, 2018 to 2 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 INVA has significant negative skewness in it's return distribution. This indicates that INVA is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in INVA), ZBRA is a small cap that deserves to be closely tracked for investment opportunities.

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