INDEPENDENCE REALTY TRUST, INC.

10.25 -0.02 (-0.19%) Sell

IRT investors dump it

13 min read

INDEPENDENCE REALTY TRUST, INC. was among the worst performers today. It fell by -0.19% to close at 10.25. It's recent 5 day performance has been -0.29%, -0.39%, +2.78%, -0.79% and +0.4%.

[Themes containing IRT]

IRT is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for IRT's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned +0.1%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to IRT.

Trend

IRT has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 26 Sep, 2016 to 21 Feb, 2018. Over the last 2 years 11 months and 7 days, IRT outperformed the SP500 index on 51% days.

IRT returned losses on 56% days in the last three months. During this time, it delivered on average +0.01% per day. It delivered it's worst daily return of -4.79%, during this period, on Thursday, 4 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 6 Nov, 2018 and went on till 12 Nov, 2018. This bullish trend returned +6.29% to investors.

During the last year IRT had 8 profitable months and 4 loss making months. Profitable number of months of IRT and SP500 index were the same. IRT was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -9.72% compared to -7.28% returned by SP500 index in Oct 2018. IRT had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

"There are no patents in finance.

IRT is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in IRT's volatility from 12 Sep, 2018 to 5 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that IRT has significant positive skewness in it's return distribution. This indicates that investors can expect IRT to recover from drawdowns quickly. Which makes IRT 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 IRT. Therefore, SP500 must receive a lower allocation than IRT in your portfolio. SP500 index usually has shorter drawdown period than IRT.

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

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